What is an indemnity clause?

An indemnity clause is a legal term that is used in contract law in New Hampshire and elsewhere. It is a clause in a contract which states that one party to the contract agrees to indemnify or reimburse the other party for any losses or costs that they may incur as the result of something that has happened during the operation of the contract. In other words, it is a form of insurance that one party gives to the other in the event of any financial losses or damages. Indemnity clauses are common in many types of contracts, particularly those related to rental agreements or business transactions. For example, a tenant may agree to be responsible for any damages caused to a rental property during their occupancy, or an investor may agree to indemnify an entrepreneur against any losses that may be due to a breach of contract on the part of the investor. These clauses can be important in business contexts, as they can help protect a party from financial losses and ensure that agreements are kept. It is important to know what the terms of an indemnity clause entail, as they are legally binding and can have significant consequences for both parties involved. As such, it is wise to seek legal advice when negotiating a contract with an indemnity clause included.

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