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Hold Harmless Agreement

A contractual arrangement whereby one party assumes the liability inherent in a situation, thereby relieving the other party of responsibility. Typically found in contracts like leases, sidetrack agreements and easements (e.g., a typical lease may provide that the lessee must "hold harmless" the lessor for any liability from accidents arising out of the premises). The effect: the lessee must provide a defense for the lessor, and if any judgment is rendered against the lessor, the lessee would have to pay.

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