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In this video, "Hold Harmless" language is explained as a contractual clause that transfers liability from one party to another, absolving them from legal or financial responsibility for certain obligations. This language is often included in contracts to protect parties from risks associated with services or work. Hold harmless clauses can be unilateral, where one party agrees not to hold another liable for damages, or mutual, where both parties waive liability towards each other. Signing a hold harmless agreement means accepting responsibility for specific risks involved in a job or service. Careful preparation and review of this language are crucial when drafting such agreements.