In a merger agreement it states, "the board of both parties will be held harmless for the losses incurred as a result of a breach of its contractual obligations in the purchase agreement" is called

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This is referred to as an indemnification clause, which is a provision in a contract that requires one party to compensate the other for any losses or damages incurred, particularly in the context of a breach of the contract. In the context of a merger agreement, it specifically protects the boards of the involved parties from financial losses due to breaches of the agreement.

In a Merger Agreement It States, "The Board of Both