| Commentary

109 Indemnity clauses

| Commentary

109 Indemnity clauses

Many construction contracts contain provisions requiring the contractor to indemnify the employer against any third-party claims arising out of the contractor’s performance of the works1. Some contracts also require the employer to indemnify the contractor against third-party claims resulting from the defaults of the employer or anyone for whom it is responsible2. Monies due under an indemnity clause are payable as a debt and therefore, as a matter of common law, there is no duty to mitigate the loss arising3. Therefore, for example, where a contractor defaults and the contract is terminated, the employer may claim the

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