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Video instructions and help with filling out and completing Indemnification division order
Instructions and Help about Indemnification division order
Hi everybody I'm attorney Aiden Kramer with the law office of Aiden Kramer in Colorado and this is the most dramatic episode of all up in your business yet just kidding it's not dramatic there's very little drama around here but we are gonna be talking about contracts and there can be some drama when it comes to contracts in particular one clause that's commonly put in contracts called indemnification that's what I'm going to talk about today cuz I write a lot of contracts and I put an indemnification provision in pretty much every contract that I write and I find myself having to explain indemnification provisions to my clients a lot because it's a confusing term it's not a common term that you hear every day and the way US lawyers write these indemnification clauses makes it even more confusing so maybe you've seen a contract you had a contract written up for you or you've signed a contract and you see this word indemnification what in the heck does that mean in its simplest terms indemnification means that one party will compensate the other party for loss or damage if you're in a contract with another party and they do something that causes you to have a lawsuit or some liability or damages with an indemnification provision it might require that party to pay for your legal expenses pay for any losses or damages that you had because they were incurred as a result of what this other party did let's use my dogs rocky and Sue as an example let's pretend my good buddy rocky is operating a dog-walking business rocky loves to go on walks and so he's taken other dogs with him and he's operating a business walking dogs let's say sue is one of those dogs that rocky takes out on a walk rocky and Sue are out walking having a great time and suddenly another dog comes up that sue doesn't like to have some problems with this Doug they have a long history goes way back we're not going to get into all the details but one thing leads to another and Sue bites the other dog since it was Rocky's business who was walking sue at the time the dog who got bitten is probably going to try to sue Rocky's business for hospital bills damages expenses related to the injury that sue caused but since it was Sue's fault that she bit this other dog rocky really shouldn't be responsible now if there's indemnification provisions in this service contract between rocky and sue then sue will need to pay for all of Rocky's attorneys fees court fees legal expenses any money in damages that he might have to pay to this other dog who got injured Sue's going to have to reimburse and pay for those losses to rocky rocky may still be ultimately liable for those damages but at least in that instance with an indemnification provision.