The Idea Behind an Indemnification Clause Is to Shift the Responsibility

question 90

True/False

The idea behind an indemnification clause is to shift the responsibility to the party with the most control over the risk exposure.

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Definitions:

Comparative Advantage

The capability of a person or group to execute a specific economic action more effectively than another action.

Exchange

The act of giving one thing and receiving another, especially of the same type or value, commonly used in the context of goods, services, or financial instruments.

Individuals

Refers to single human beings, distinct from a group, class, or family.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.