Legal Term
Indemnification in Agricultural Equipment Lease for Family Farm
Legal Definition
A contractual clause in an agricultural equipment lease where the lessee (the family farm) agrees to compensate the lessor (the equipment owner) for specified losses, damages, liabilities, and legal costs arising from the use, operation, or condition of the leased equipment, often including defense against third-party claims.
In Plain English
This is the 'who pays when something goes wrong' rule in a farm equipment rental. It usually makes the farmer responsible for covering the owner's costs if the equipment causes an injury, damages property, or leads to a lawsuit.
Example in a Contract
LESSEE SHALL INDEMNIFY, DEFEND, AND HOLD HARMLESS LESSOR FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION, JUDGMENTS, LOSSES, LIABILITIES, AND COSTS (INCLUDING ATTORNEYS' FEES) ARISING OUT OF OR RELATED TO (A) ANY BODILY INJURY, DEATH, OR PROPERTY DAMAGE CAUSED BY THE EQUIPMENT OR LESSEE'S OPERATION THEREOF; (B) ANY VIOLATION OF LAWS OR REGULATIONS BY LESSEE; OR (C) ANY MISUSE, NEGLIGENCE, OR WILLFUL MISCONDUCT OF LESSEE OR ITS EMPLOYEES, AGENTS, OR INVITEES. THIS INDEMNITY SHALL SURVIVE TERMINATION OF THIS LEASE. NOTWITHSTANDING THE FOREGOING, LESSEE'S OBLIGATION HEREUNDER SHALL NOT APPLY TO LOSSES CAUSED SOLELY BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LESSOR.
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