Entering into a contract can seem straightforward, you may even enter them more often than you think. Every time you buy groceries, or apply for a credit card you have in fact entered into a legal contract. However, the way the law has developed there are many areas that are full of pitfalls for the unwary. An indemnification agreement is one such concept. An indemnification clause is a statement that if one party is sued based on the terms of the contract, the other party will cover any judgments or costs against them. Such agreements are regularly upheld in court. If you are signing a contract with an indemnity agreement you might benefit significantly from letting a lawyer look it over before you sign.
If you are the drafter of a contract, it is important to think carefully if you may be liable for the actions of the other party whether it may be wise to shift that liability. Experienced attorneys can bargain with the other party on your behalf to get you the exact contract you are comfortable with.
Indemnity agreements are regularly used when parties sign “boilerplate” or pre-prepared contracts. It is important to be especially wary of these, as the less experienced party may have less of an opportunity or knowledge as to how to protect their interests and rights. Additionally, they may have less power to negotiate.
Need a Lawyer for a indemnification business contract? To retain Garmo & Kiste, PLC call us at (248) 398-7100 for a free consultation or contact us with a private message.