Limitation Of Liability

Limitation Of Liability in United Kingdom

Limitation Of Liability in Contract Formation

It is often advisable to include this term in any contract.

In Pinsent Mason’s words:
This section caps the liability of either party to the contract. For example, ‘Neither party shall have any liability to the other party for a claim of loss of profits…’. In an ideal world both parties would be seeking to have no liability to the other side. However, in a commercial context this is unlikely to be agreed and so both parties should try and limit their liability during the negotiation stage to appropriate levels. It is worth noting that there are statutes in force (discussed below) that forbid exclusion of liability in certain circumstances.



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