Definition Of Indemnification Agreement


    A indemnification agreement (sometimes called a “harmless agreement”) can be a contract or part of a contract. In these cases, a compensation agreement is a contractual language that one of the parties considers unharmed (without damages) in a contract for certain acts that may harm the other party. Let`s say you`re a software developer and your customer wants to be sure you keep them unscathed for any claims of copyright or intellectual property infringement. The indemnification clause may be as follows: the agreement may describe a counterparty (usually a sum of money) used to secure the agreement. The agreement specifies the specific conditions under which the exemption from compensation is rendered. It is quite complicated legal language. Companies that offer the public somewhat dangerous activities (skiing, parasailing, amusement parking) require members to sign a compensation agreement to the public that exempts the company from any liability in the event of an accident. Let`s look at an example that can help you see the difference more clearly. For example, when you use tax preparation software, the company that provides the program typically exempts you from tax penalties resulting from the software miscalculation of your tax liability. .

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