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The main difference in this case is that hold harmless may require a party to protect against actual losses as well as potential losses while indemnification protects against actual losses only.
While such agreements are widely recognized in the State of California, they are only enforceable if, and only if, both the general contractor and the subcontractor sign the agreement. Unlike some contracts, which need only be signed by the party to be charged, an indemnity agreement must be signed by both parties.
A hold harmless clause is also called a release of liability, a waiver of liability, a save harmless clause, or a hold harmless letter or release. These agreements are usually seen in leases, contracts, and easements, in an attempt to protect either one party or both.
A hold harmless agreement is a clause typically included in construction contracts to release one party from consequences or liabilities due to the act of the other.
Enforceability of Hold Harmless Agreements The general answer is yes, that these documents signing away your right to sue for negligence are legally enforceable.
A hold harmless agreement is a clause in a legal contract that releases one party from liabilities such as damage, bodily injury or financial loss.