hold harmless
Definition
A hold harmless clause is a promise in a contract where one party agrees not to sue the other party if something goes wrong, even if that other party was partly at fault. Think of it as a legal shield that protects one business from being dragged into a lawsuit by the other.
Example
If you hire a contractor to renovate your shop and they accidentally injure a customer, a hold harmless agreement might mean the contractor takes full legal and financial responsibility so you stay out of the lawsuit.
Watch Out
Courts sometimes refuse to enforce hold harmless clauses that try to protect someone from their own reckless or intentional wrongdoing, so this clause is not a bulletproof guarantee.
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.