On Hold Harmless Agreement Overview – Texas Law and Regulation
Protecting Against Loss: An On-Hold Harmless Agreement2 min read
An on hold harmless agreement is a contract between two or more parties that protects one of the parties against legal responsibility for any loss or injury that may arise from any business transaction. The agreement mitigates risk, particularly for those in Dallas or Texas in general, offering local businesses the assurance of legal protection. Entering into an on hold harmless agreement is a key element of doing business in the state, and understanding the facets of the contract is often the first step in protecting oneself from legal action. With that, the following is an overview of on hold harmless agreement in Dallas or Texas, outlining the purpose, components, and signing parties, in addition to advice on finding the right counsel to ensure a safe understanding of local regulations.
The Purpose of an On Hold Harmless Agreement
The purpose of an on hold harmless agreement is to ensure one party is exempt from legal responsibility should any loss or injury arise from any business transaction. These agreements are commonly used when two or more parties enter an agreement to work together, including product exchanges, services, and contracts, to name a few. The agreement is also known as a release of liability, indemnity agreement, or indemnification clause, and it offers legal protection against certain losses.
Components of an On Hold Harmless Agreement
The different components of an on hold harmless agreement are designed to protect the parties associated in the contract, meaning each party is relieved from responsibility or damages. The components vary depending on what is written, but they typically include a provision that requires all associated costs with litigation or insurance (if included) to be shared among the parties, and a term that requires both parties to comply with applicable laws and regulations surrounding the agreement. Depending on the context, on hold harmless agreements may also include provisions that limit damages or require indemnity, as well as stipulations surrounding confidential information or data access.
Signing Parties of an On Hold Harmless Agreement
In the case of an on hold harmless agreement, there is typically a signatory and one or more contracting parties, or parties signing the agreement. The signatory, in most cases, is the party liable for any damage or losses associated with the agreement. This party is then responsible for protecting the contracting party from any risk associated with the agreement, such as being responsible for paying for any medical expenses if the contracting party is injured during the agreement’s term.
Finding the Right Counsel to Understand Local Regulations
When considering entering into an on hold harmless agreement, it is essential to obtain the right counsel to make sure local regulations are understood. Rather than rely on outdated methods for finding the right legal representation, businesses in Dallas or Texas can benefit from a more modern approach, such as UpCounsel. UpCounsel is an online legal service that connects businesses to experienced legal counsel that specializes in their expertise. The platform offers easy access to attorneys that can help businesses navigate on hold harmless agreement negotiations and offer the best legal protection possible.