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PLAYBOOK TEMPLATES
Hospitality Hotel Contract
A Hospitality Hotel Contract covers management, operation, or branding arrangements in the hospitality sector. This playbook guides negotiation of performance benchmarks, termination rights, and brand compliance.
Liability & Indemnification
Negotiation strategy
Negotiate to limit indemnity obligations to direct losses and ensure a reasonable monetary cap is in place. Advocate for mutual indemnities to fairly distribute risk.
Ensure indemnity clauses are reciprocal and include carve-outs for gross negligence. Aim to set a cap that aligns with industry standards.
Essential elements
1
Indemnity for Direct Losses
Limits indemnity to direct losses.
2
Monetary Cap on Indemnity
Sets a maximum liability cap.
3
Mutual Indemnities
Reciprocal indemnity for third-party claims.
Action framework
ACCEPT
Propose edits to align indemnity with business goals, focusing on direct losses and appropriate caps.
EDIT
Reject clauses that impose unlimited liability or lack mutual indemnities.
ADD
Add clauses for direct losses, monetary caps, and mutual indemnities if absent.
PRO TIP
Always ensure indemnity clauses are clear and include specific carve-outs for gross negligence.
Example clauses
FAVORABLE
Indemnity for Direct Losses
"Each Party (the 'Indemnifying Party') shall indemnify, defend, and hold harmless the other Party (the 'Indemnified Party') from and against any and all claims, damages, losses, and expenses, including but not limited to reasonable attorneys' fees, arising out of or resulting from the Indemnifying Party's performance of this Agreement, but only to the extent caused by the negligent acts or omissions of the Indemnifying Party, its employees, subcontractors, or agents. The indemnity obligation shall be limited to direct losses and shall not include any indirect, incidental, consequential, or punitive damages."
NEUTRAL
Standard Indemnity Clause
"Each Party shall indemnify the other for losses arising from their own negligence."
UNFAVORABLE
Unlimited Indemnity
"Each Party shall indemnify the other for all losses, without limitation."
Fallbacks
High-Risk Projects
In high-risk projects, consider increasing the monetary cap and ensuring comprehensive carve-outs for gross negligence.
International Agreements
For international agreements, ensure indemnity clauses comply with local laws and consider currency fluctuations in monetary caps.
Joint Ventures
In joint ventures, mutual indemnities should be carefully balanced to reflect shared responsibilities and risks.
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