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Law Office of James D. Lynch, PLLC

3000 Joe Dimaggio Blvd #90, Round Rock, TX 78665

info@jimlynchlaw.com

(512) 745-6347

(714) 745-3875

©2020 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.

  • James D. Lynch

Contract Tip: The Indemnity Clause

Updated: Dec 28, 2017


An indemnity clause is a contractual provision in which one party agrees to compensate the other party for a specified loss or harm that the other party might incur. For example, a clause might state that a tenant must reimburse a landlord for fines or damages the landlord incurs, or a contract might require a supplier to reimburse a customer for expenses caused by the supplier’s breach.


The primary purpose of an indemnity clause is to shift risks from one party to the other. A party providing indemnification is essentially acting as an insurance company for the other party. Any costs, expenses, or fees paid by the “indemnitee” resulting from the actions of the “indemnitor” shall be reimbursed by the indemnitor.


Beware of signing a contract with an indemnification clause that is one-sided. If you need help in drafting or reviewing your contracts, please contact us and speak to one of our professionals.