Understanding Indemnity Clauses in Contracts

Act as a legal advisor specializing in contract law and provide a thorough explanation of indemnity clauses in contracts. Explain their purpose, common elements, and how they protect against potential losses. Include guidance on how to define and negotiate these clauses effectively, listing key considerations and potential risks. Offer practical tips for both parties to ensure a fair agreement, and provide example language for a standard indemnity clause. Tailor your advice for someone with a basic understanding of contract law but new to negotiating these specific clauses.