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From the Cashman case to the Builders FirstSource-Southeast Group and beyond, courts have been busy forums in 2025 examining how imprecise or contradictory indemnification language jeopardizes a contract’s enforcement. Real estate businesses and lawyers encounter indemnity provisions in virtually every type of commercial contract. Tenants indemnify landlords for liability relating to the tenant’s use of their premises; buyers indemnify sellers for physical damage caused by the buyer’s due diligence investigations; subcontractors indemnify prime contractors for the subcontractor’s deficient work or materials; corporations indemnify their officers for the officers’ good faith actions consistent with their authority in furtherance of the corporation’s business; borrowers indemnify lenders for just about anything; and so on.
The essence of any indemnity provision is burden shifting for certain liability incurred by an indemnitee to the indemnitor. The concept is rooted in common law and there are myriad reasonable justifications for expanding the common law indemnification by contract, and it is often the last thing business owners want to spend time negotiating.
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