Comparative Law Researches

Comparative Law Researches

Indemnity Clause against Third Parties in Private Contracts (Comparative Study in Iran and United States’ Legal Systems)

Document Type : Original Research

Authors
1 Assistant Professor in Private Law, Social Siences and Law Faculty, Payam Noor University, Tehran, Iran
2 Assistant Professor in Private Law, Khorasan Institute of Higher Education, Mashhad, Iran
Abstract
In the legal systems of Iran and United States, the indemnity clauses against third parties are used in order to manage risks related to the contract, and in the assumption of damage to the third party and Filing a claim for damages on his part, these clauses change the rights and duties of the parties to the contract. Since the determination of the scope, nature and effects of the indemnity clause largely depends on the agreement of the parties and the way the clause is set, the parties' understanding of the concept of this clause has a significant effect on determining the nature, effects and ultimately enforceability of this clause in judicial authorities. In this analytical and comparative research, while examining the concept of the indemnity clause against third parties, we try to deal with the nature, effects and the methods of execution of this clause in private contracts in Iran and United States’ legal systems. According to the terms of the indemnity clause, one of the parties of the contractual relationship or both of them can accept the risk of final responsibility for the loss and damages imposed on the other party due to third party claims and the indemnifier's obligation is commitment to results. Although the indemnity clauses against third parties are valid between the parties, but , in order of protect the rights of third parties, they are non-opposabillity against them.


Keywords

Subjects


Badini, Hassan, Deylami, Shiva. (2018). Indemnity Clause, Private Law Studies Quarterly, 48(3), 435- 452 (In Persian).
Carter, J. (2008). Indemnities Against Breach of Contract. 25th Annual Banking& Financial Services Law& Practice Conference. www.bfsla.org.
Courtney, Wayne (2011)."The Nature of Contractual Indemnities", Journal of contract Law, No.1, Vol. 27, pp.1-17, http://ssrn.com/abstract=1904095.
Ebrahimpour, Asanjan, Ebrahimi, Adel & Bagheri S. N. (2016). An Analysis about Indemnity Clauses: Case Study: Oil and Gas Contracts, Comparative Law Research, 20 (3), 1-26 (In Persian).
Ebrahimi, Yahya. (2010). A Comparative Study on the Notion and Effects of Good faith in Formation, Interpretation and Performance of Contracts. International Law Review, 26(41), 61-90 (In Persian).
Garner, Bryan A (2011), "Garner's dictionary of Legal Usage", Oxford, Oxford University Press,
Gesellschap. V. A& Hicks.R. L. (2014). "The Interplay between Indemnification Provision and Insurance Clauses in Contracts for Goods and Services", Association of Corporate Counsel. ACC Docket, Pp.35-53, https://www.acc.com/resource-library/interplay-between-indemnification-provisions-and-insurance-clauses-contracts-goods.
Guberman, Ross (2014), "Not My Problem: Indemnification", https://www.legalwritingpro.com
Indemnity and Hold Harmless Clause (2011), https://www.jus.uio.no/ifp/english/research/projects/anglo/essays/bjerketveit_abstract.pdf, 1403/06/09.
Izanloo, Mohsen, Shahin, Abolfazl (2020). Comparative Study on Indemnity Clause in Contracts, Encyclopedia of Economic Law Journal, 17, 103-142 (In Persian).
Monahan, G. (2001), Essential Contract Law, Australia: Cavendish Pub, Second edition.
Kiffmeyer. M (2019). "50 States Hold Harmless Survey". The Rose Group. https://rosedejong.com/50-states-hold-harmless-survey
King, Henry A (2015), "Contractual Indemnities: Getting the other guy to Pay your Legal Liability", https://www.bartier.com.au/insights/articles/contractual-indemnities-handle-with-care.
Kis. L. A. (2001). "Using Indemnification Agreements as an Effective Risk-Transfer Device". www.aircraftbuilders.com.
Matter. R. (2014). "How to Negotiate and Draft an Effective Indemnity Clause". http://www.cybermanual.com/how-to-negotiate-and-draft-an-effective-indemnity-clause.html.
Matthews, Stafford, (2013),"Indemnification clauses",Acc New York, pp. https://www.scribd.com
Mozart, Heyra, (2019), "Exemption Clause in the Law of Contract, Its Significance in tanzanian Context", PP.1-15, https://www.academia.edu.
Nolan, J. R& Nolan-Haley. J. M. (1990). "Black's Law Dictionary. "United States, West Publishing Company.
Parker. P. L& Slavich. J. (1990). "Contractual Efforts to Allocate the Risk of Environmental Liability: Is There a Way to Make Indemnities Worth More Than the Paper They Are Written On?", SMU Law Review, 44 (4). PP. 1349-1381. http://scholar.smu.edu/smulr.
Perkins, Jason &Bristow, April (2011),"Indemnity Clauses in Construction Contracts", Carlton Fields, PP.1-5, https://www.carltonfields.com/files/Publication/1f9a4d55-7be2-453d-8118-02d1da7fb4cf.
Peterson, Joseph& Tucker, Ashford (2010), "The Buck Stops Where? Avenues to Indemnification in the copyright Context",7 Published in Intellectual Property litigation,Vol.21,No.3, PP. 3-7, http://law.capital.edu.
Pisano, C. M. (1987). "Judicial Interpretation of Indemnity Clauses". Louisiana Law Review. 48(1). PP. 169-181. www.digitalcommons.law.isu.edu.
Richardson. L &Lang. p.& Reid. C. (2015). "Indemnities in Commonwealth Contracting", Legal Briefing, PP. 1-20. https://www.ags.gov.au/publications/legal-briefing/br93.pdf.
Summers, David M, 1982, "Third Party Beneficiaries and the Restatement (Second) of Contracts", Cornell Law Review, vol.67, Issue 4, pp. 880-899, https://scholarship.law.cornell.edu.
Youngblood, Hull& Flocos, Peter N (2010), "Drafting and Enforcing Complex Indemnification Provisions", The Practical Lawyer, PP.22-37, https://files.klgates.com.