Although inserted into contracts usually as almost an afterthought, a contract’s indemnity language and attorneys’ fees clause may end up playing a huge difference when a dispute arises. Although the vast majority of contracts do not end up disputed, much less in litigation, when that small percentage of contracts are contested, a few clauses become instrumental in not only determining who is the dispute’s victor, but in forcing a favorable settlement.
The law for indemnity clauses, indemnity language and obligations is a rapidly changing area. How old is your company’s indemnity clause? How will the language be interpreted once a dispute breaks out? When was it last updated? Having contract language that is current enhanced enforcement of the agreement and protects your company.
Do your contracts have attorneys’ fees clauses, granting fees reimbursement for the victory in the event of a dispute over the agreement? The attorneys’ fees clause may become the most valuable asset in your contract. Make sure the clause is current and may be enforced.