What is recourse and indemnity in a Dutch supply chain?

Dutch term: Regres en vrijwaring in de keten | Legal basis: Articles 6:10 and 6:102 BW

In Dutch supply chain relationships, recourse (regres) and indemnity (vrijwaring) clauses determine which party ultimately bears the economic cost when a claim is made. Under article 6:10 BW, a jointly liable party that pays more than its internal share has a right of recourse against the others. Contractual indemnity clauses supplement this by allocating specific risks between supply chain partners.

Indemnity clauses are particularly important for product liability, product compliance and warranty chains: if an end user claims against the importer, the importer needs a contractual right to pass the claim upstream to the manufacturer. Without explicit indemnity provisions, the statutory recourse rules may not cover all situations, particularly for consequential losses and regulatory fines.

Why it matters for international businesses

For manufacturers, importers and distributors, the indemnity chain in supply contracts is where product liability and compliance risk is actually managed. Getting the allocation right at the drafting stage is far cheaper than sorting it out during a claim.