Hold Harmless Agreement

In one sentence

A contract clause in which one party agrees to protect the other from legal liability and financial loss.

Plain English

A hold harmless agreement is a promise that one party will shield the other from lawsuits, claims, and financial responsibility for certain risks. It's similar to an indemnity clause but often focuses on protecting someone from third-party claims (claims by people outside the contract). For example, a gym might ask members to sign a hold harmless agreement so the gym isn't liable if a member gets injured while exercising. These agreements are common in activities involving physical risk or property.

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Example

A rock climbing gym requires customers to sign a hold harmless agreement stating the gym is not responsible for injuries sustained during climbing, even if the gym was negligent.

Used in a sentence

“The event organizer required all participants to sign a hold harmless agreement before the marathon.”

Related terms

Indemnity Clause

A contract provision requiring one party to compensate the other for losses, damages, or legal costs arising from specified events.

Negligence

Failure to exercise reasonable care that results in harm to another person.

Breach of Contract

Failure to do what a contract requires, without a valid legal excuse.

Good Faith and Fair Dealing

A legal duty to act honestly and fairly when making and performing contracts.

Consideration

Something of value exchanged by each party to make a contract binding.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Offeror

The person who makes an offer to enter into a contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.