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A hold-harmless clause is an example of risk
A. retention
B. O avoidance
C. O sharing
D. O transfer

Ask by Simpson Huff. in the United States
Mar 26,2025

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A hold-harmless clause is an example of risk transfer.

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Beyond the Answer

Did you know that hold-harmless clauses have been around for centuries? They’re often found in various contracts, dating back to early legal practices where one party needed protection from the liabilities that another might incur. This ensures that if things go south, only one party bears the financial brunt, making it a favorite among service providers and contractors!
In the real world, hold-harmless clauses are commonly seen in leases, construction contracts, and insurance policies. They serve to shield one party from legal liability arising from the other party’s actions, like a safety net in a circus act. Just remember, while they’re meant to protect, they can sometimes lead to misunderstandings if not clearly defined!

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