Bills · 2013-2014 Regular Session
Relating to: indemnification provisions in contracts for the sale of services.
Contractor Contracts Damage _to property_ Insurance — Policy Sales
- Introduced, stopped here
- Passes Senate, not reached
- Passes Assembly, not reached
- Governor signs, not reached
- Law, not reached
Unfamiliar terms? Glossary
What this bill does
Plain-language analysis by the nonpartisan Legislative Reference Bureau
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.