HOLD HARMLESS AGREEMENT
An agreement or contract in which one party
agrees to hold the other free from the responsibility
for any liability or damage that might arise out of
the transaction involved.
For example, a company might agree in an
employee’s contract to pay the judgment if the
person is successfully sued for injuries sustained
by a plaintiff if the employee is acting within the
scope of his or her authority on company time.
In certain cases, particular parties may not,
however, be exempted from liability. For exam-
ple, a provision exempting a common carrier
from all liability for loss would ordinarily be
void, as against public policy.
Hold harmless agreements are ordinarily