Hold Harmless Clause


DEFINITION of 'Hold Harmless Clause'

A statement in a legal contract stating that an individual or organization is not liable for any injuries or damages caused to the individual signing the contract. An individual may be asked to sign a hold harmless agreement when undertaking an activity that involves risk for which the enabling entity does not want to be legally or financially responsible.

Also known as hold harmless provision.

BREAKING DOWN 'Hold Harmless Clause'

For example, a sports club may include a hold harmless clause in its contract to prevent its members from suing if they are injured in the course of participating in a tennis match. In this example, the hold harmless clause would ask the participant to accept all risks associated with the activity, including the risks of injury or death.

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