A contract clause in which one party agrees to pay damages or claims that the other party may be required to pay to another. For example, if a hotel is sued by an attendee that is injured at an event due to the fault of the group, an indemnification clause might require the group to pay back the hotel. Some times the law requires one party to indemnify another even without a specific clause. Generally, the terms of the clause will be followed over the state law.