Common Contracts
1 similar null contracts
USING INDEMNIFICATION AGREEMENTS AS AN EFFECTIVE RISK-TRANSFER DEVICEAugust 1st, 2006
The indemnification agreement is the most widespread and frequently encountered contractual risk-shifting device. An indemnification agreement is essentially where one party agrees to assume the liability of another party in the event that there is a claim for loss or damage. Through the use of an indemnification agreement, the manufacturer or owner of the product is not transferring a duty owed to the user or consumer, but rather, is simply transferring the liability that can arise out of the breach of such a duty. In effect, the manufacturer or owner remains liable, but the contractor has assumed the obligation to pay for any loss or damage that arises out of that liability.
