Indemnification Clause

Cos'e

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.

Perché conta

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.

Come applicarla

• 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.

Testo di esempio

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.

Consigli per la negoziazione

• • 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.

Errori frequenti

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

Riferimenti normativi

• BW 6:74 Damages for non-performance Diritto olandese
• Indemnity vs. warranty distinction (general doctrine)

Salvo diversa indicazione, i riferimenti riguardano il diritto olandese (Burgerlijk Wetboek, il Codice Civile olandese); gli strumenti UE come il GDPR si applicano in tutta l'UE. Si tratta di informazioni generali, non di consulenza legale. Altre giurisdizioni trattano questi concetti in modo diverso. Verifichi il testo vigente e la propria situazione con un avvocato qualificato.