The respected fellow experts
Our company enter into a food product supply agreement with Company 'X' the clauses of the proposed agreement inter alia states:
1. X supply formula /recipe for the food items. which we have to follow strictly.
2. X check our factory to ensure that products are produced by following hygienic norms as prescribed by 'X'.
3. X check finished products before accepting the products.
Beside all the above clauses there is an indemnification clause which states that if ultimate consumer suffer any physical problem by consuming the products our company will be liable.
My objection on behalf of our company is, only after satisfying himself with the above 3 clauses the X accepts the products. Hence thereafter any problem with the product not our company , but X will be liable. Hence i want to drop the Indemnification clause.
Please suggest whether my view is proper?