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A hold harmless agreement entails giving up rights to collect on claims when signed. It is similar to an indemnity agreement, which entails paying claims for the other party's faults. These agreements can pose problems for businesses, especially in vendor contracts. Indemnity agreements can make one contractually responsible for injuries caused by a third party. Hold harmless agreements are closely related and are often contested in contracts. Mutual agreements may provide some protection, but caution is advised.
