Weaver v. American Oil Co.

257 Ind. 458 (1971)

Facts

Weaver (D) entered into a lease with American Oil (P) for a gas station. The lease in a printed form contract had a hold harmless clause in it that obligated D to indemnify American (P) for its negligent acts occurring on the leased premises. That particular clause was never explained to D, and there was no evidence that D had read the contract or was otherwise aware of the clause. An employee of P negligently sprayed D and his assistant with gasoline. Both D and his assistant were burned and injured on the leased premises. P sought a declaratory judgment to determine liability to D's under the contract clause. D alleged that the clause was unconscionable. The trial court held D liable. The appellate court reversed. D appealed.