Environmental
In New Mexico, 'environmental indemnification clauses' in purchase contracts are used to:
ARequire the seller to test for all contaminants
BProtect the buyer or seller from future environmental liability arising from pre-existing conditions✓ Correct
CGuarantee the property is clean
DRequire the government to fund cleanup
Explanation
Environmental indemnification clauses shift risk between parties—typically requiring the seller to indemnify the buyer against claims arising from pre-existing contamination, or vice versa. They are common in commercial transactions.
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