A hold harmless agreement, also known as an indemnity agreement, is a legal document that is used to transfer responsibility and liability from one party to another in a particular situation or circumstance. This type of agreement is commonly used in a variety of business transactions, including real estate, construction, and professional services.
In a hold harmless agreement, one party agrees to release the other party from any legal claims that may arise as a result of an activity or transaction. Essentially, it is a way to protect both parties from potential legal liabilities and disputes. But who issues a hold harmless agreement?
The answer to this question depends on the specific circumstances of each transaction and the parties involved. In some cases, the party providing the goods or services may issue the hold harmless agreement as a means of protecting themselves from any future legal claims. This is often the case in construction projects, where subcontractors or suppliers may be asked to sign a hold harmless agreement as a condition of their work.
In other situations, the party receiving the goods or services may issue the hold harmless agreement. For example, a property owner may ask a contractor or service provider to sign a hold harmless agreement to protect themselves from any potential claims or damages that may arise during the project.
A hold harmless agreement can also be a standard clause in a contract, which is included as a means of protecting both parties. In this case, the agreement is issued by both parties as part of the contract negotiation and drafting process.
It is important to note that a hold harmless agreement should always be drafted and reviewed by a qualified legal professional. This will ensure that the agreement accurately reflects the intentions of both parties and provides adequate protection in the event of a legal dispute.
In conclusion, a hold harmless agreement can be issued by either party involved in a transaction or project, depending on the specific circumstances. Regardless of who issues the agreement, it is essential to have it reviewed by a legal professional to ensure that it provides adequate protection for all parties involved.