# Indemnification Clause

Source: https://contracko.com/fr/bibliotheque-de-clauses/clause-indemnisation

# 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.

### Comment Contracko aide

Contracko's AI review identifies indemnification clauses across your contract portfolio and flags uncapped or one-sided obligations before they become a liability. All indemnity-bearing contracts are kept in one searchable repository so your legal and finance teams can quickly assess total exposure and find specific agreements when a third-party claim arrives.

## Références juridiques

- [BW 6:74 Damages for non-performance Droit néerlandais](https://wetten.overheid.nl/BWBR0005289)
- Indemnity vs. warranty distinction (general doctrine)

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.

## Pertinent pour

[Logiciels & SaaS](https://contracko.com/fr/secteurs/logiciel-saas)[Services informatiques](https://contracko.com/fr/secteurs/services-informatiques)[Industrie manufacturière](https://contracko.com/fr/secteurs/fabrication)[Construction](https://contracko.com/fr/secteurs/industrie-construction)[Pharmaceutique et biotech](https://contracko.com/fr/secteurs/pharma-biotech)

## Clauses associées

- [Limitation of Liability Clause](https://contracko.com/fr/bibliotheque-de-clauses/limitation-de-responsabilite)
- [Warranties Clause](https://contracko.com/fr/bibliotheque-de-clauses/garanties)
- [Intellectual Property Clause](https://contracko.com/fr/bibliotheque-de-clauses/propriete-intellectuelle)

## Termes associés

- [Indemnity](https://contracko.com/fr/glossaire/indemnite)
- [Liability](https://contracko.com/fr/glossaire/responsabilite)
- [Breach of contract](https://contracko.com/fr/glossaire/rupture-de-contrat)

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Conforme au RGPD. Chiffré. Jamais utilisé pour l'entraînement de l'IA.

## Foire aux questions

Questions courantes sur cette clause.

- **Q:** Is an indemnity the same as a warranty?
  **A:** No. A warranty supports a damages claim for breach; an indemnity is a direct promise to pay defined losses, often without proving breach or causation in the usual way.

- **Q:** Should indemnities be capped?
  **A:** It is negotiated. Indemnifying parties want caps; recipients often carve out IP, data and confidentiality indemnities from the cap.

- **Q:** What is the notice requirement when a third-party claim triggers an indemnity?
  **A:** Most clauses require prompt written notice; failing to notify in time may reduce or forfeit the right to indemnification if the indemnifying party is prejudiced.

- **Q:** Who controls the defence of a third-party claim under an indemnity?
  **A:** Typically the indemnifying party, if it accepts the claim promptly and conducts the defence diligently; the indemnified party usually retains a right to approve any settlement.

- **Q:** Can an indemnity cover gross negligence or wilful misconduct?
  **A:** Contractually yes, but Dutch courts may not give effect to an indemnity that shields a party from the consequences of its own intentional or grossly negligent conduct.

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