Knock-For-Knock Indemnities and the Law
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The effect of choice of law on knock-for-knock clauses
1 Introduction
Writing in the context of the upstream oil industry, I take the broad “knock-for-knock” concept to be composed of three elements which are, beginning with the simplest and moving to the most expansive, (1) the basic knock-for-knock clause itself; (2) the wider system of indemnities and exclusions which, along with the knock-for-knock clause, form the fabric of oil service responsibility allocation; and (3) a supportive general system of law which facilitates the application of such contractual devices. In order to look at the effect on knock-for-knock clauses when choice of law changes from one law to another, one must have a default system to compare other laws against. For reasons stated below, I propose to “adopt” English law as being the default or “mother” system for knock-for-knock clauses.1