When you have a business that requires physical activities, for example, gym, bungee jumping and rock climbing, those activities might have risk or damage, such as injury. To protect the client and your company form those disadvantages, you need to a legal agreement that can be signed before the activity takes place to solve this kind of problem. This is a hold harmless agreement. Want to know more about this contract? Please check this out below!
Hold Harmless Deal Meaning
A hold harmless contract is a clause to free the business partner from liabilities and consequences due to the incident. This legal document tries to minimize the risk or danger of being part of the company. Also, a hold harmless agreement clause explains the specific terms to protect the intended business partners or the contractor. In other words, this document is associated with companies that host potentially risky activities. For example, lending your motorcycle to someone, you can have him sign a hold harmless contract. If there is an accident, he cannot sue you.
The Validity of Hold Harmless Contracts
Hold harmless depends on the state’s laws, the conditions and terms in the agreement, and also the type of company is being protected. In this case, you need to consult first to an expert to make your contract valid and useful. Sometimes, this contract is not really good option if the other business partner was neglectful.
How to Fill Out a Hold Harmless Contract
There are some of the essential contents of a hold harmless contracts are:
- Write down the date of the contract
- Put the name of the party or business partners that held protected. Do not forget to put their address
- Give the details about the activity the hold harmless agreement template is about
- Give them information on the area or location and who is being responsible for the activity
- Write down the date the contract takes effect and how long the deal lasts
- Give your signatures.
Necessary Information in Hold Harmless Contract:
Before drafting a hold harmless agreement, be prepared to understand the following details:
- The person or business partner to be held harmless
- The person or business partner providing protection
- The type of safety or security is provided
- A time frame
Specific Language of Hold Harmless Contract:
There are the lists of standard headings in hold harmless agreement:
- Terms Definition
- List of Exceptions for Indemnification
- Authorization of Indemnification
- Failure to Defend
- Notice of Claim
- Settlement and Consent (for both business partners)
- Assumption of Defense
- Rights and Obligations of Both Business Partners
- Governing Law
- General Provisions
A hold harmless document is important in a business that host potentially risks discussing clearly the terms and conditions of the protection. When it comes to constructing a hold harmless contract for your business, the hold harmless agreement is what you need for. The models are available with many formats such as PDF, MS Word, Google Sheet, and Google Docs.
Hold Harmless Agreement Template Sample