26.—(1) DLRL shall pay to LUL all reasonable costs, charges, damages and expenses not otherwise provided for in this Part of this Schedule which may be occasioned to or reasonably incurred by the Underground companies—
(a)by reason of the construction of a specified work or the failure thereof; or
(b)by reason of any act or omission of DLRL or of any person in its employ or of its contractors or others whilst engaged upon a specified work,
and DLRL shall indemnify the Underground companies from and against all claims and demands arising out of or in connection with a specified work or any such failure, act or omission; and the fact that any act or thing may have been done by the Underground companies on behalf of DLRL or in accordance with plans approved by the engineer or in accordance with any requirement of the engineer or under his supervision shall not (if it was done without negligence on the part of the Underground companies or of any person in their employ or of their contractors or agents) excuse DLRL from any liability under the provisions of this sub-paragraph.
(2) The Underground companies shall give DLRL reasonable notice of any such claim or demand and no settlement or compromise of such a claim or demand shall be made without the prior consent of DLRL.
(3) Any liability of DLRL under this paragraph shall be reduced proportionately to the extent to which any cost, charge, damage, expense, claim, demand or loss is attributable to the negligence of the Underground companies or their servants, contractors or agents.