Indemnification — the most dangerous clause in a foreign client contract

One section can cost more than the project: you reimburse any losses, fines, and legal fees arising from your services.

Three verbs

Term Effect
Indemnify Pay money
Hold harmless Client suffers no loss
Defend Pay their lawyers in a lawsuit

Defend is the heaviest.

Triggers

Third-party IP, data breach, your subcontractors, regulatory violations — client shifts risk to you.

Negotiate

  1. Cap at fees paid (12 months)
  2. Mutual indemnity
  3. No consequential damages from you
  4. Defend → reimburse after judgment only

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Informational only, not legal advice.