A hold harmless agreement is a legal document that releases one party from any liability in the event of an incident or accident. This agreement is often used in business transactions where one party wants to avoid liability for any damage or injury that may occur during the transaction.
In Delaware, hold harmless agreements are commonly used in various business dealings, especially in construction and real estate. These agreements are also widely used in contracts with vendors and service providers.
The purpose of a hold harmless agreement is to protect the party that is not at fault or responsible for the incident. The agreement states that one party agrees to indemnify, defend and hold the other party harmless from any claims, damages, or liabilities arising out of the incident. It is meant to protect the party from any legal action that may arise from the incident.
In Delaware, the enforceability of hold harmless agreements is governed by the state`s statutes and case law. The Delaware Code states that a hold harmless agreement is valid if it meets certain requirements, such as being in writing and signed by both parties.
It is important to note that hold harmless agreements are not an absolute protection from liability. Delaware courts will examine the circumstances surrounding the incident to determine if the hold harmless agreement is enforceable. For example, if one party has been grossly negligent or engaged in willful misconduct, the hold harmless agreement may not be enforceable.
Additionally, some hold harmless agreements may violate Delaware`s public policy. For example, a hold harmless agreement that exempts a party from liability for intentional harm or criminal conduct may not be enforceable.
In conclusion, if you are entering into a business transaction in Delaware, it may be in your best interest to include a hold harmless agreement in your contract. However, it is important to consult with an attorney to ensure that the agreement is properly drafted and enforceable under Delaware law.