This form provides boilerplate contract clauses that define the exclusivity or nonexclusivity of indemnity as a remedy under the terms of the contract agreement. Different language options for exclusivity and nonexclusivity are included.
Keywords: Arizona, indemnity provisions, exclusivity of indemnity, remedy, types. Arizona Indemnity Provisions — Exclusivity of Indemnity as a Remedy In Arizona, indemnity provisions serve as important safeguards in contractual agreements, aiming to allocate risks between parties involved. One specific aspect that deserves exploration is the exclusivity of indemnity as a remedy in the context of Arizona law. Under this provision, parties may agree that indemnity is the sole remedy available for specific claims or damages arising from a contractual relationship. In Arizona, there are two main types of indemnity provisions concerning the exclusivity of indemnity as a remedy: 1. Full Exclusivity Indemnity: This type of indemnity provision is characterized by its comprehensive nature. It means that in the event of a claim or damages arising from the contractual relationship, the indemnity clause serves as the exclusive remedy available to the injured party. This provision is often preferred by parties seeking to limit their liability strictly to the terms of the contract. For instance, in a construction contract where there is an indemnity provision establishing full exclusivity, if a third party brings a claim against the property owner for damages resulting from the contractor's negligence, the property owner will only have the right to seek indemnification from the contractor as the sole remedy. 2. Partial Exclusivity Indemnity: In contrast to full exclusivity, partial exclusivity allows the injured party to seek alternative remedies, such as filing a lawsuit, while also providing the option to seek indemnification from the other party. This provision allows flexibility, enabling the injured party to pursue multiple avenues for obtaining legal redress. An example of partial exclusivity indemnity can be found in commercial lease agreements. If a tenant causes damage to the property and a third party claims against the property owner, the injured party may choose to file a lawsuit against the tenant and, at the same time, seek indemnification from the tenant based on the contractual indemnity provision. It is important to note that the enforceability and interpretation of indemnity provisions in Arizona can vary depending on the specific language used, the intentions of the parties, and the circumstances of the agreement. Legal advice from an experienced Arizona attorney is recommended when drafting or interpreting indemnity provisions to ensure compliance with the jurisdiction's laws and regulations. In summary, Arizona indemnity provisions, specifically focusing on the exclusivity of indemnity as a remedy, offer parties the opportunity to allocate risks and protect themselves against potential liabilities. The two main types, full and partial exclusivity, provide different levels of remedial options for the injured party, creating flexibility or strict limitation, depending on the agreed terms.
