When 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.
