What is an indemnity clause?

An indemnity clause is a legal agreement found in a contract that shifts the responsibility of any losses or damages caused to one party to another. In Arizona, this clause is typically used to protect one of the parties to a contract (known as the indemnitee) from losses caused by another party (known as the indemnitor). For example, if a party to a contract causes the other party to suffer financial losses due to their breach of the contract, the indemnity clause can require the breaching party to reimburse the other. This clause is also commonly used in construction contracts to protect contractors from legal liabilities if someone is injured while working on the project. Ultimately, an indemnity clause provides security and protection to one of the parties in a contract and can help both parties avoid costly litigation.

Related FAQs

What is an indemnity clause?
What is the effect of an anticipatory breach?
What is the termination of a contract?
What is an executed contract?
What is the effect of illegality in a contract?
What is an anticipatory breach of contract?
What are standard form contracts?
What is the standard of care in a contract?
What is implied in a contract?
What is the difference between a covenant and a contract?

What is an indemnity clause?

Related FAQs

Related Blog Posts