What is a contract of indemnification?

A contract of indemnification is a legal agreement that obligates one party to cover any losses or liabilities experienced by the other party. It is commonly used in Hawaii when one party agrees to accept any risks associated with a particular activity or transaction, in exchange for being indemnified by the other party for any losses incurred. Typically, the party most at risk for losses will be the party that selects the indemnification clause in the contract. In Hawaii, this clause is typically found in commercial or business contracts, but it can also be found in other contracts. This clause may include language that holds one party harmless from any losses related to a specific activity or project, or it may provide an indefinite coverage of all losses or liabilities. In practice, the indemnifying party is responsible for any losses that may occur as a result of the activity or transaction. This could include costs related to damages, legal fees, or other financial losses. The indemnifying party may also be responsible for covering any liabilities that arise from the activity or transaction, such as those connected to property damage, medical bills, or breach of contract. Overall, a contract of indemnification helps to protect the interests of both parties involved in a transaction, by ensuring that any losses or liabilities are covered appropriately. Without this type of clause, one party may have an unfair burden of risk, placing them in a potentially unfavorable situation.

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What is a contract of indemnification?

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