What is an indemnity clause?

An indemnity clause is a type of legal clause included in a contract that holds one of the parties responsible for any loss, damage, injury, or liability that arises during the fulfillment of the contract. It is often used as a form of insurance by the signatories, protecting them from any and all unforeseen events or circumstances that could negatively affect the outcome of the contract. In Virginia, an indemnity clause should provide for all costs incurred by the parties in the event of a breach of contract, or for any other incident that would fall under the protection of the clause. The clause should be very explicit and clear, to ensure that all parties understand the nature of their obligations and responsibilities, and the potential consequences in the event of a breach of contract. Additionally, the laws of Virginia govern the interpretation and enforceability of indemnity clauses, and must be taken into account when drafting any such agreement.

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