This form brings together several boilerplate contract clauses that work together to outline the procedures, restrictions, exclusivity and other aspects of an indemnity provided for under the terms of the contract agreement.
Texas Indemnification — Long-Form Provision refers to a legal clause often included in contracts or agreements in Texas to allocate the risk of potential losses, damages, or liabilities between parties. This provision outlines the responsibility of one party (the indemnity) to protect and compensate the other party (the indemnity) for any losses or damages resulting from certain specified events or actions. In Texas, there are two main types of indemnification provisions that are commonly used: broad form indemnity and intermediate form indemnity. 1. Broad Form Indemnity: This type of indemnification provision places a higher level of responsibility on the indemnity. It usually requires the indemnity to indemnify the indemnity for any and all losses, damages, or liabilities arising out of the contract, regardless of whether the indemnity was partially at fault or not. This provision provides the maximum level of protection to the indemnity and shifts a significant amount of risk onto the indemnity. 2. Intermediate Form Indemnity: In contrast to broad form indemnity, intermediate form indemnification limits the indemnity's responsibility based on their own fault or negligence. Under this provision, the indemnity is only required to indemnify the indemnity for losses or damages caused by the indemnity's own actions or negligence. If the indemnity shared some fault or contributed to the loss, the indemnity's obligation to indemnify may be reduced proportionally. This provision strikes a balance between protecting the indemnity and holding the indemnity accountable for their own actions. The purpose of these indemnification provisions is to allocate the potential risks involved in a contract fairly between the parties, ensuring that one party does not bear an undue burden of liability. They serve as a mechanism to protect both parties from potential financial losses that may arise during the course of their contractual relationship. It is important for parties to carefully consider and negotiate the indemnification provisions before entering into any contractual agreements to ensure a clear understanding of their respective obligations and protections.Texas Indemnification — Long-Form Provision refers to a legal clause often included in contracts or agreements in Texas to allocate the risk of potential losses, damages, or liabilities between parties. This provision outlines the responsibility of one party (the indemnity) to protect and compensate the other party (the indemnity) for any losses or damages resulting from certain specified events or actions. In Texas, there are two main types of indemnification provisions that are commonly used: broad form indemnity and intermediate form indemnity. 1. Broad Form Indemnity: This type of indemnification provision places a higher level of responsibility on the indemnity. It usually requires the indemnity to indemnify the indemnity for any and all losses, damages, or liabilities arising out of the contract, regardless of whether the indemnity was partially at fault or not. This provision provides the maximum level of protection to the indemnity and shifts a significant amount of risk onto the indemnity. 2. Intermediate Form Indemnity: In contrast to broad form indemnity, intermediate form indemnification limits the indemnity's responsibility based on their own fault or negligence. Under this provision, the indemnity is only required to indemnify the indemnity for losses or damages caused by the indemnity's own actions or negligence. If the indemnity shared some fault or contributed to the loss, the indemnity's obligation to indemnify may be reduced proportionally. This provision strikes a balance between protecting the indemnity and holding the indemnity accountable for their own actions. The purpose of these indemnification provisions is to allocate the potential risks involved in a contract fairly between the parties, ensuring that one party does not bear an undue burden of liability. They serve as a mechanism to protect both parties from potential financial losses that may arise during the course of their contractual relationship. It is important for parties to carefully consider and negotiate the indemnification provisions before entering into any contractual agreements to ensure a clear understanding of their respective obligations and protections.
