Consider Carefully Before Signing Chicago Hold Harmless Agreement
When major projects or contractual agreement involve multiple parties in Chicago, a hold harmless agreement is often a part of the process2 min read
When major projects or contractual agreement involve multiple parties in Chicago, a hold harmless agreement is often a part of the process. These types of agreements are also known as “indemnity agreements” or a “hold harmless clause.” It is an agreement that prevents the injured party from asserting a claim against the indemnifying party due to bad faith or negligence. Before signing a hold harmless agreement in Chicago, however, there are certain considerations that should be taken into account.
The purpose of a hold harmless agreement is to outline the limits of a contract. It helps protect the parties involved in a contract from taking legal action against each other. In Chicago, a hold harmless agreement is meant to protect the defendants from any occurring legal action due to any activity on behalf of the defendant.
The language used in a hold harmless agreement is crucial, and it should be reviewed carefully before the agreement is signed. If the agreement favors one party more than the other, it could lead to legal trouble. An experienced Chicago-area attorney should be consulted before a hold harmless agreement is signed.
When drafting a hold harmless agreement, the following five considerations should be kept in mind:
1. Ensure That It Is a Legally Binding Agreement
The terms of a hold harmless agreement can only be legally enforceable if it adheres to certain provisions. Make sure that all the legal formalities are in place and the agreement is clear. By consulting a Chicago-area attorney, you can ensure that the agreement meets all the necessary legal requirements.
2. Establish Clearly Defined Responsibilities
The agreement should clearly define the duties and responsibilities of all the parties involved. Otherwise, the responsibility for any loss or damages incurred could be muddied. Additionally, establishing responsibility for any actions or omissions by either party should be outlined.
3. Make Sure That There is Adequate Insurance
A hold harmless agreement should include a clause that addresses the need for adequate insurance. This prevents any cost arising under the agreement from falling on a single party. Chicago-area attorneys are well-versed in the relevant provisions and can ensure that all parties are sufficiently covered.
4. Protect Against Future Changes
Parties should not be able to alter the agreement once it’s signed. Factors such as inflation or price changes should also be taken into consideration.
5. Find an Experienced Chicago-area Attorney
Ensuring that a hold harmless agreement is properly drafted is essential, and can only be done with the help of an experienced attorney. Make sure you find an attorney with experience both in the legal terminology of the particular agreement, as well as Chicago-specific regulations.
Having a well written and enforceable hold harmless agreement is essential for any transaction in Chicago. Not only can it protect the parties involved from potential harm, but it can also protect them against costly legal action in the future. Before signing any kind of agreement, be sure to consult with a qualified attorney who is familiar with Chicago-area regulations.
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