Contractual Liability Clause Alternatives

Summary

Clauses limiting liability for non-direct damages are common in contracts to protect parties from unforeseen claims. For resource suppliers, such clauses can limit recovery of certain losses, which may be concerning if they rely heavily on contract performance. Alternatives include setting a liability cap, mutual indemnification, and performance guarantees to balance interests. A sample clause can incorporate these options, ensuring both parties are protected and risks are balanced.

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alternative in favor of ressource supplier or to balance both parties
To achieve a balance in the contract or favor the resource supplier, consider these alternatives:
- Cap on Liability: Set a reasonable limit on the liability amount rather than excluding certain damages entirely.
- Mutual Indemnification: Ensure both parties agree to indemnify each other for certain types of losses.
- Performance Guarantees: Include guarantees or warranties that offer some security to the resource supplier.
Would you like more information on any of these options?
can you formulate a clause including these options
Here is a clause that incorporates the options to balance the interests of both parties:
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Liability and Indemnification Clause
*. Cap on Liability: The liability of Dressler Consulting for any claims arising under this Agreement shall not exceed [insert amount], covering damages such as loss of profits or business.
*. Mutual Indemnification: Both parties agree to indemnify and hold each other harmless from any claims, losses, or damages arising from breach of this Agreement or performance failures, excluding negligence or willful misconduct.
*. Performance Guarantees: Dressler Consulting guarantees the performance of services as outlined in this Agreement and agrees to offer remedies or adjustments in cases of non-performance, ensuring the resource supplier's interests are protected.
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This clause aims to balance risk while providing protection and assurance to both parties.