This Insight was prepared with the assistance of summer
student Nick Klatt.
When entering commercial arrangements, parties seek to manage
risk and clarify responsibilities through various contractual terms
and provisions. One of the most commonly used provisions for this
purpose is
an indemnification or indemnity
clause.
At a high level, rights of indemnification are additional or
extraordinary contractual rights of the parties in addition to
general legal rights and remedies arising from a breach of
contract. Parties involved in reviewing and negotiating Information
Technology (IT) contracts and confidentiality or non-disclosure
agreements are increasingly faced with the decision of whether to
include indemnity clauses in their contracts.
