Understanding Contractual Liability

Contractual liability  - TJ Woods Insurance, MAWhen businesses sign an agreement to work together or lease a property, it often involves signing an indemnity agreement, also known as a hold harmless agreement.

Definition of Contractual Liability

In this agreement, one party promises to assume the liability of the other under specified conditions, which is called contractual liability. If Company A assumes contractual liability for Company B and Company B is sued, then Company A will indemnify (reimburse) Company B for the costs of the lawsuit.

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