See the above clause in layman language mean that any liability or expense which is incurred to ABCD due to mistake of service provider from a third party then service provider has to pay all such amount (that is loss and damge occured to ABCD) to ABCD ltd. So if the service provider furnish wrong information and then the third party files a claim then service provider has to bear all the cost including legal cost of such claim.
Interpretation of this clause
What is the interpretation of this clause? "The Service Provider shall indemnify and hold harmless ABCD Ltd from and against any losses, liabilities, damages, claims, costs and expenses (including attorney’s fees and expenses, any third party claims), which Exide Life or any of its Directors or officers may incur or suffer as a result of third party claims in connection with any of the following: -> the submission of inaccurate information by the Service Provider to ABCD Ltd" Does this clause include claims that comes from 3 rd party to ABCD Ltd due to wrong information provided by service provider about the third party due to error by employee of service provider?
Asked 5 years ago in Business Law
8 Answers
Hello,
It reads that " submission of inaccurate information by the Service Provider to ABCD Ltd". It does not define anywhere the reason of inaccurate inmformation, so in case ABCD has occured loss due to inaccurate information on part of service provider then the indemnity bond will subsist.
Regards
1) Yes, here any claims or harm to ABCD company all responsibility will be taken care by service provider at any cost whatsoever is mentioned in the indemnity clause. The purpose of indemnity clause is that to proctect ABCD Company from any financial losses whatever are mentioned in the agreement clause.
This is a disclaimer clause against the loss due to misinformation submitted by a third party.
This is common clause
This cannot be a disclaimer to take shelter for their wrong doings of the service provider
If false information is supplied due to error by its employees service provider would be responsible as per the indemnity clause
No
Yes, certainly.
The realtionship between an emoloyer and emoloyee is likey realtionship of agent and principal and for acts of an agent done in due course of official duty princiapl/emoloyer is responsible or bound of it.
So the comonay is very much accountabe for the acts done by its employee even if it is done mistakenly.
Dear Sir,
The service provider is responsible for all the losses which are incurred due to wrong information or any other wrong act done by ABCD Company.
The third party is entitled for damages from service provider as per the above clause.
