What must the Contractor do if notified of a judicial action alleging infringement against the City?

The requirement for the Contractor to hold the City harmless and defend the action at their expense is grounded in the principles of liability and indemnification. When a judicial action is brought against the City regarding infringement, it indicates that there may be legal issues relating to the use of property, intellectual rights, or other legal claims. By holding the City harmless, the Contractor is taking responsibility for any legal repercussions that may arise from their work or actions associated with the contract.

This approach ensures that the City is protected from bearing the burden of legal fees or damages that may result from a lawsuit, effectively transferring the risk back to the Contractor. It also emphasizes the Contractor's commitment to fulfilling their obligations under the contract, ensuring that they address any potential legal claims proactively without compromising the City's interests.

The other options do not adequately address the legal responsibility that comes with contractual agreements relating to infringement claims. For example, negotiating a settlement might not be immediately relevant without assessing the nature of the claim and consulting with the City. Stopping all work immediately could disrupt project timelines and is not a necessary reaction to a legal notification. Simply notifying the City and awaiting further instructions would delay the response to the judicial action and could leave the City vulnerable to ongoing legal issues. Thus, the requirement to