What is an indemnification clause?

An indemnification clause is a part of a contract that can be used in California law to protect one of the parties from certain kinds of liabilities or losses. The clause usually states that one party will indemnify, or compensate, the other for any liabilities or losses that arise from that party’s actions. For example, if one party breaches the contract, the other party may be protected from any resulting losses. Typically, the indemnification clause will outline the types of liabilities or losses that are covered by the clause, such as legal fees and court costs. It may also limit the amount of money the party is liable for, or require that the other party acts in good faith in order to receive compensation. This is to protect both parties from an excessive financial burden. Indemnification clauses are a key part of many contracts and can be used to protect parties in California law. It is important to carefully read the indemnification clause of a contract before signing it, as both parties may be held responsible for breaches of the contract.

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What is an indemnification clause?

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