Limitation Of Liability Clause
Summary
A limitation of liability clause in a contract caps the service providers liability to the client, often to the fees paid in the last month. This clause applies to all forms of action, including contract and tort. To protect client interests, consider adding provisions like excluding certain damages, negotiating a higher liability cap, or including an indemnification clause. These additions can help ensure the clients interests are better safeguarded in the agreement.Full Conversation
i will be sharing recruitment service agreement which we are rendering from one of the consultant, i will share you the clause please let me know if any of these contain un favorable or negative clause to us.
The Limitation of Liability clause generally protects the service provider more than the client. Here are potential concerns:
- Cap on Liability: Limits the total liability to fees paid in the last month, which could be very low compared to actual damages.
- Broad Application: Applies to all forms of action (contract, tort, negligence, etc.).
Would you like more details on potential risks or how to negotiate this clause?
in the above limitation of liability clause any of other clause can be added to safeguard client interest
To safeguard the client's interest in a limitation of liability clause, you can consider adding the following provisions:
- Exclusion of Certain Damages: Exclude specific types of damages from the liability cap, such as intentional misconduct or gross negligence.
- Higher Liability Cap: Negotiate for a higher liability cap that reflects potential damages more accurately.
- Indemnification Clause: Include a clause where the service provider indemnifies the client for third-party claims arising from the provider's services.
Would you like more information on any of these provisions?
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Comment: In the above limitation of liability clause, consider adding the following provisions to safeguard the client's interest:
- Exclusion of Certain Damages: Exclude specific types of damages from the liability cap, such as intentional misconduct or gross negligence.
- Higher Liability Cap: Negotiate for a higher liability cap that reflects potential damages more accurately.
- Indemnification Clause: Include a clause where the service provider indemnifies the client for third-party claims arising from the provider's services.
Would you like more information on any of these provisions?
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Is there anything else you would like to discuss about this agreement?