Indemnification Recalls Sample Clauses

The "Indemnification; Recalls" clause requires one party to compensate the other for losses, damages, or liabilities arising from product defects or recalls. In practice, this means that if a product is found to be unsafe or non-compliant, the responsible party must cover costs related to recalling the product, such as notification, shipping, and disposal expenses, as well as any third-party claims. This clause is essential for allocating risk and ensuring that the financial burden of a recall or related legal claims falls on the party responsible for the defect, thereby protecting the other party from unforeseen liabilities.