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Simple English definitions for legal terms
save-harmless agreement
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A quick definition of save-harmless agreement:
A save-harmless agreement, also known as a hold-harmless agreement, is a contract between two parties where one party agrees to protect the other from any harm or loss that may occur. This means that if something goes wrong, the party who made the agreement will take responsibility and compensate the other party for any damages. It is a legal way to ensure that both parties are protected in case of any unforeseen circumstances.
A more thorough explanation:
A save-harmless agreement, also known as a hold-harmless agreement, is a legal contract in which one party agrees to indemnify or compensate the other party for any losses, damages, or liabilities that may arise from a particular transaction or activity.
For example, if a construction company hires a subcontractor to perform a specific task, the subcontractor may be required to sign a save-harmless agreement that protects the construction company from any claims or lawsuits that may result from the subcontractor's work.
Another example is when a landlord requires a tenant to sign a save-harmless agreement that protects the landlord from any damages or injuries that may occur on the rental property.
These examples illustrate how a save-harmless agreement can be used to shift the risk of potential losses or liabilities from one party to another. By signing the agreement, the indemnifying party agrees to assume responsibility for any damages or losses that may occur, thereby protecting the other party from financial harm.