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Hold Harmless Agreement

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An agreement or contract in which one party agrees to hold the other free from the responsibility for any liability or damage that might arise out of the transaction involved.

For example, a company might agree in an employee's contract to pay the judgment if the person is successfully sued for injuries sustained by a plaintiff if the employee is acting within the scope of his or her authority on company time.

In certain cases, particular parties may not, however, be exempted from liability. For example, a provision exempting a common carrier from all liability for loss would ordinarily be void, as against public policy.

Hold harmless agreements are ordinarily contained in leases and easements.



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Now compare what the CGL provides with a real (the names have been changed) hold harmless agreement furnished by Bill Wilson, head of the IIABA Virtual University: "To the fullest extent permitted by law, ABC Engineering Inc.
At a special Board of Selectmen meeting Saturday morning, East Putnam Fire District President Doug Cutler said he would sign the controversial hold harmless agreement required by the town if it were rewritten to mirror the agreement Putnam has with the state.
In other words, the manufacturer receives an indemnity and hold harmless agreement from the marketer that a particular product formulation is safe.
 
 
 
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