What is the test for an indemnity clause in a commercial lease agreement?
Nova Scotia, Canada
The following excerpt is from Abdulrahman v. Jereen, 2019 NSSM 19 (CanLII):
The purpose for such a clause is that a joint debtor may face a cross claim, or separate claim, for indemnity, which (if it occurred) would frustrate in whole or in part the releasee’s desire to be free of claims from any direction. It is a well- known equitable principle that joint debtors may face claims for contribution and indemnity. As was stated in Lafrentz v. M & L Leasing, 2000 ABQB 714 (CanLII):
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