What is an indemnification clause?

An indemnification clause is a legal provision found in contracts that provide a remedy for one party in the event that the other party suffers injury or damage. Under such a clause, the party responsible for the damage is obligated to make restitution to the other party. In Virginia, an indemnification clause is often used in employment contracts, business contracts, and leases to provide protection for both parties. An indemnification clause is also known as an “indemnity” or “hold harmless” clause. This type of clause protects an innocent party from potential loss if the other party breaches the contract or causes some kind of injury or harm. It is important for both parties to understand the terms of the clause and their respective rights and responsibilities. In Virginia, indemnification clauses must comply with state laws. The language in the clause should clearly define the rights and obligations of each party, and the scope of the agreement should be limited to the described injury or damage. Finally, the clause should specify how any dispute arising from the clause will be resolved.

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