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Indemnification Clause

One party agrees to cover specified losses, claims or third-party liabilities of the other party.

Ce que c'est

An indemnity is a promise to compensate the other party for defined losses, often third-party claims arising from IP infringement, data breaches or negligence. It shifts risk contractually beyond what general damages law would otherwise provide.

Pourquoi c'est important

Indemnities give a direct, often broader claim than ordinary breach damages and govern who controls and pays for third-party litigation. Their scope and caps can dwarf the contract value, so precise drafting is essential.

Comment l'appliquer

  • Define exactly which losses and claims are covered and any carve-outs.
  • Set procedure: prompt notice, control of defence, and duty to cooperate.
  • Decide whether the indemnity is capped or sits outside the liability cap.
  • Require the indemnified party to mitigate and avoid admitting liability.

Exemple de formulation

The Supplier shall indemnify and hold harmless the Customer against all third-party claims, losses and reasonable legal costs arising from the Supplier's infringement of intellectual property rights.

Conseils de négociation

  • The indemnifying party should seek a cap and exclude the other party's own negligence.
  • The indemnified party should keep IP and confidentiality indemnities uncapped.

Pièges courants

  • Open-ended indemnities with no cap, exposing one party to ruinous liability.
  • No defence-control or notice mechanism, leading to disputes mid-litigation.

Références juridiques

Sauf mention contraire, les références renvoient au droit néerlandais (Burgerlijk Wetboek, le Code civil néerlandais) ; les instruments de l'UE tels que le RGPD s'appliquent dans toute l'UE. Il s'agit d'informations générales, pas de conseils juridiques. D'autres juridictions traitent ces concepts différemment. Vérifiez le texte en vigueur et votre situation avec un avocat qualifié.

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