defense of claims
Definition
Defense of claims refers to the legal process of fighting back against accusations or demands made against you or your business. When someone files a lawsuit or makes a formal complaint claiming you owe them money or caused them harm, your defense is everything you do to protect yourself and prove why you should not be held responsible.
Example
A customer sues your bakery claiming they got sick from your food, and you hire a lawyer to gather evidence, interview witnesses, and argue in court that your kitchen passed all health inspections and the illness came from somewhere else.
Watch Out
Many business contracts include a clause requiring one party to pay for the other party's defense of claims, which means you could end up footing the legal bill for someone else's lawsuit if you are not careful about what you sign.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.