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A hold harmless agreement involves giving up rights to collect on claims, similar to an indemnity agreement where one may end up paying for claims that are not their fault. Indemnity agreements can become complicated as one may be held responsible for damages caused by someone they are contractually bound to. Hold harmless agreements are commonly found in vendor contracts and can be problematic for businesses. It is recommended to try to negotiate mutual indemnity or hold harmless agreements to avoid potential legal issues.
