Define: Save Harmless

Save Harmless
Save Harmless
Quick Summary of Save Harmless

“Save harmless” is a legal term used in contracts and agreements to indemnify or protect one party from liability or financial loss resulting from specified actions, claims, or events. When one party agrees to “save harmless” another party, they are essentially agreeing to assume responsibility for any damages, costs, or claims that may arise from the specified circumstances, thereby shielding the other party from potential legal or financial consequences. This provision helps allocate risk between the parties involved in the agreement, ensuring that one party does not bear the full burden of liability for certain risks or occurrences. “Save harmless” clauses are commonly found in various types of contracts, such as leases, construction agreements, and service contracts, where there is a potential for disputes or liabilities to arise during the course of the contractual relationship.

What is the dictionary definition of Save Harmless?
Dictionary Definition of Save Harmless

v.

  1. also called hold harmless, to indemnify (protect) another from harm or cost.
  2. to agree to guarantee that any debt, lawsuit or claim which may arise as a result of a contract or contract performance will be paid or taken care of by the party making the guarantee. Example: the seller of a business agrees to “save harmless” the buyer from any unknown debts of the business.
Save Harmless FAQ'S

“Save harmless” is a provision in a contract that obligates one party to indemnify and protect another party from any claims, damages, liabilities, or losses arising out of a specified event or circumstance.

While both terms are often used interchangeably, a “save harmless” clause specifically focuses on protecting the other party from specified claims or liabilities, whereas an indemnity clause may provide broader protection for losses or damages.

“Save harmless” clauses are commonly used in various types of contracts, such as lease agreements, construction contracts, service agreements, and commercial transactions, to allocate risk and protect parties from potential liabilities.

A “save harmless” clause may cover a wide range of liabilities, including personal injury claims, property damage, legal expenses, breach of contract claims, and third-party claims arising from the actions or omissions of one party.

While a “save harmless” clause provides a level of protection, its scope and effectiveness may be subject to limitations imposed by law, public policy, or specific contractual provisions. Some liabilities, such as those arising from intentional misconduct or gross negligence, may not be indemnifiable.

The language of a “save harmless” clause should be clear, specific, and tailored to the particular risks and circumstances of the agreement. It should identify the types of claims or liabilities covered, the duration of the indemnity obligation, and any limitations on liability.

In some cases, a party may waive its right to be saved harmless or negotiate alternative provisions for allocating risk. However, such waivers or modifications should be carefully considered and clearly documented in the contract.

Breaching a “save harmless” provision may result in the non-breaching party seeking remedies such as indemnification, damages, or specific performance through legal action or dispute resolution mechanisms specified in the contract.

Parties can ensure compliance with a “save harmless” clause by fulfilling their obligations, promptly notifying the other party of potential claims or liabilities, cooperating in the defence or settlement of claims, and maintaining appropriate insurance coverage.

Yes, it is advisable for parties to seek legal advice from qualified attorneys when drafting, negotiating, or interpreting a “save harmless” clause to ensure that their rights, obligations, and potential liabilities are clearly understood and adequately addressed.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 28th March, 2024.

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