Agreement To Indemnify A Municipality

By 2021-04-08 No Comments

Suppose Larry`s Landscaping rents a lawnmower from Edward`s equipment. Edwards asks Larry to sign a contract with a compensation contract. In the agreement, Larry promises to compensate Edwards if Larry`s landscaping accidentally causes personal injury or property damage to third parties while using the lawnmower, and the victim asks for the return of Edwards equipment. Most of the time, a simple explanation that quotes the above information is all that is needed to satisfy the hesitations of a seller or his lawyer. But that`s not always the case. In some cases, a seller may fear such a provision and require the city to provide compensation as part of the agreement. If your community is ever in such a dilemma, it will be necessary to decide the importance of the agreement with this supplier. Often, the municipality can simply go out and find another supplier for the same service, ready to conclude the contract without compensation from the city. However, there are rare cases where a municipality wishes to appease a seller and provide compensation in the agreement. In these rare cases, the city only has to follow the language of Article XI, Section 7, by assessing and collecting taxes, and then creating a declining fund. Finally, it should be noted that a compensation agreement negotiated in violation of state law is void, but a crippling compensation clause in an otherwise enforceable contract will generally not invalidate the rest of the contract. Suppose your company rents a Building from Prime Properties. The lease requires your company to compensate Prime Properties for damages sustained during the term of the building lease.

One night, there is a fire that damages the building. As the damage was caused during the rental period, you are contractually required to reimburse Prime for repair costs. If the owner asks for payment, your liability policy does not cover the damages. An agreement to compensate the building owner for the damage caused by the fire is not an insured contract. Owners often hire elevator service contractors to maintain elevators in their buildings.


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