Free Hold Harmless Agreement
An agreement that allows one party to grant another party protection from liability for future losses or claims that may result from a specified activity.
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Suppose you’re intent on starting a business centered around a particularly dangerous activity, like bungee jumping. There are so many things that could go wrong that may result in a serious injury or death, you may be discouraged from really following through with your business plan. You need a way to reduce your potential liability to clients who are aware of the risk your service inherently poses – you need a Hold Harmless Agreement.
Executing a Hold Harmless Agreement protects a party from legal claims arising from a specified scenario. To continue with the current example, bungee jumpers that sign the agreement can’t turn around and sue and sue the company if they break their arm. But the hold harmless agreement isn’t just useful for dangerous activities; those who rent out property or are hiring a third party to perform services may also want a hold harmless agreement to be created as a shield from damages that may arise out of those activities.
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