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A hold harmless agreement entails relinquishing the right to collect claims once signed, often linked to indemnity agreements where one party assumes responsibility for another's claims. These agreements can pose significant issues for businesses. Indemnity agreements can create problems as they may hold a party contractually liable for torts caused by third parties with whom they are bound. This scenario can be particularly challenging, leading to various complications. Hold harmless agreements are commonly found in vendor contracts, and businesses often resist them unless a mutual indemnity or hold harmless arrangement is established.
