A hold harmless clause is found in many lease contracts. It generally is paired with the word “indemnify” and is used to avoid liabilities, claims or damages.
A hold harmless agreement or clause is legally binding and designed to release one party from legal liability. When this clause is found in a lease agreement, the purpose is generally to hold the landlord harmless in the event of any claims or damages.
When a hold harmless agreement is contained within a lease, the tenant agrees, by signing the lease, that in the event of any legal or financial claims, he will hold the landlord harmless. The tenant agrees to take full responsibility for any actions or claims that may arise.
If a party does something that is negligent or intentional, the hold harmless agreement typically does not apply. They also do not apply if one of the parties has engaged in fraudulent activities.