Environmental Compliance Indemnity Agreement
An Environmental Compliance Indemnity Agreement is a legal contract in which one party agrees to indemnify and hold harmless another party from any losses, damages, or liabilities that arise from non-compliance with environmental laws and regulations.
This type of agreement is commonly used in real estate transactions, corporate mergers, or manufacturing contracts where environmental issues may pose a significant risk. The indemnifying party typically assumes responsibility for any fines, penalties, or costs associated with remedial actions required to address environmental contamination or hazardous waste issues that may be discovered after the execution of the contract.
For example, if a company purchases a piece of land that is later found to be contaminated, the Environmental Compliance Indemnity Agreement would require the seller to cover any cleanup costs or legal fees incurred as a result of that contamination, provided the seller was aware of the contamination at the time of the sale. This agreement serves to protect the buyer from unexpected liabilities and encourages compliance with environmental regulations by holding the responsible party accountable.
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