Mutual Release And Indemnity Clause
Description
How to fill out Arizona Mutual Release?
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FAQ
Each party hereto shall and does hereby indemnify and save harmless the other, as well as the other's directors, officers, employees, servants, agents, contractors and shareholders, from and against any and all claims, demands, actions, suits, proceedings, liabilities, losses, damages, costs, expenses, fees, fines,
Mutual indemnification provisions are meant to provide both parties with a sense of security. In a mutual indemnification agreement, both parties agree to compensate the other party for damages arising from a breach of contract for which the indemnifying party was responsible.
A release extinguishes any actual or potential claims the releasor may have against the releasee without regard to third parties. In contrast, an agreement to indemnify does not apply to claims between the parties to the agreement.
Many clients insist on unilateral indemnification clauses, basically putting all potential liability solely on a contractor's shoulders. The latter should insist on a mutual indemnification clause, where both parties are responsible for liabilities that arise out of their own fault.
