Common use of Responsibility of Principal Clause in Contracts

Responsibility of Principal. The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under this Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made; provided, however, that (i) in no event shall Grant PUD be liable for the actions or inactions of Customer or its subcontractors with respect to obligations of Customer under Section 5 of this Agreement and (ii) in no event shall Customer be liable for the actions or inactions of Grant PUD or its subcontractors with respect to obligations of Grant PUD under Section 5 of this Agreement. Any applicable obligation imposed by this Agreement upon the hiring Party shall be equally binding upon, and shall be construed as having application to, any subcontractor of such Party.