What is Indemnification?

Risk: High. One of the most important clauses to review carefully.

Definition

A requirement that one party compensate the other for losses, damages, or legal costs. One-sided indemnification clauses can require you to pay a company's legal fees even if they caused the harm. Mutual indemnification applies equally to both parties.

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Related Terms

Limitation of LiabilityConsequential DamagesRepresentations and Warranties

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