Indemnity Clause Negotiation Tips

Summary

Indemnity clauses in contracts can impose significant liability on the indemnifying party. In England, these clauses are enforceable if they are clear and unambiguous. To protect yourself, consider negotiating the clause by clearly defining its scope, setting a liability cap, and ensuring mutual indemnity. Signing without limits can expose you to unlimited liability, legal fees, and unpredictable risks.

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England
The indemnity clause you're referring to is a common clause in contracts, but it does place a significant amount of liability on you. You would be responsible for covering any costs, claims, or liabilities the company incurs due to your services.
In England, indemnity clauses are enforceable as long as they are clear and unambiguous. However, it's important to ensure that the scope of the indemnity is reasonable and not excessively broad.
Would you like to know more about how to negotiate or limit this clause in your contract?
Yes
To negotiate or limit an indemnity clause in your contract, you could consider the following:
- Define Scope Clearly: Specify what exactly the indemnity covers.
- Limit Liability: Set a cap on the amount you could be liable for.
- Mutual Indemnity: Ensure the company also indemnifies you for their negligence or breaches.
Would you like more specific examples or additional strategies?
Is it safe to sign without limits
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It's generally not advisable to sign an indemnity clause without limits. Here are some risks:
- Unlimited Liability: You could be responsible for significant financial losses.
- Legal Fees: Costs associated with defending claims.
- Unpredictable Risks: Unexpected events could lead to large liabilities.
Would you like more specific advice on negotiating this clause?