AB 140

Current law generally affords parties to a contract freedom to determine the

terms of the contract, and these contract terms are enforceable in court unless the

court determines that the terms are against public policy. Current law generally

allows a party to enforce a provision in a contract that indemnifies or holds harmless

the party from or against liability for loss or damage resulting from that party's own

negligence or intentional acts or omissions, or that requires another person to

provide a defense to the party in connection with an assertion of liability for loss or

damage resulting from that party's own negligence or intentional acts or omissions

(indemnification provision).

Under this bill, in a contract for the sale of services, other than an insurance

policy, an indemnification provision is generally against public policy and void.

Under the bill, an indemnification provision may be enforced if it is part of a contract

for construction work that is entered into by a registered construction contractor.