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PURCHASING MANAGEMENT
1. EXCLUSION OF LIABILITY
2. LAND AGENCY
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EXCLUSION OF LIABILITY
Limitation of liability la!"# "om#tim#" $#f#$$#%a" liability
la!"#.
It i" t ont$at#% a'$##m#nt t&at "(#ifi#" t%ama'#" t&at
on# (a$ty )ill b# obli'at#% to($o*i%# to t ot$ !n%#$ t#$m" an%
on%ition"
in t ont$at.
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In legal term?
+A liability i" '#n#$ally $#"(on"ibility toom(#n"at# fo$ "om#
fail!$# to (#$fo$mao$%in' to an #"tabli"% ao$%in' to an#"tabli"% o$
a'$##%,!(on "ti(!lation. B#a!"#of #l#m#nt of $i"- liability la!"#
a$# ommon in
all a$#a" of ont$at la)/.
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EXAMPLE. In IT limit" of liability la!"#" a$# ty(ially )$itt#n
into ont$at"
b#t)##n any t)o (a$ti#" inl!%in' %i"t$ib!tion a'$##m#nt"
"oft)a$# li#n"# a'$##m#nt"an% "#$*i#,l#*#l a'$##m#nt". In
a"oft)a$# li#n"# a'$##m#nt fo$ #0am(l# t limitation of liabilityi"
on# of t mo"t im(o$tant la!"#" b#a!"# it limit" t amo!ntan% ty(#"
of %ama'#" on# (a$ty an $#o*#$ f$om t ot$ (a$ty.Fo$ #0am(l# if t
"oft)a$# %o#"nt )o$- an% t om(any "!ff#$"
%ama'#" a" a $#"!lt t limitation of liability )ill $#"t$it
tom(any" ability to $#o!( it" lo"".
B#a!"# a limitation of liability la!"# ty(ially fa*o$"
)&i*#$(a$ty %$aft#% t a'$##m#nt ,, !"!ally t *#n%o$ ,,
it"(a$ti!la$ly im(o$tant to n#'otiat# t&at (a$t of t ont$at
aft#$
a$#f!l on"i%#$ation.
http://searchitchannel.techtarget.com/definition/distributor-agreementhttp://searchcio.techtarget.com/definition/software-licensehttp://searchitchannel.techtarget.com/definition/service-level-agreementhttp://searchitchannel.techtarget.com/definition/service-level-agreementhttp://searchcio.techtarget.com/definition/software-licensehttp://searchitchannel.techtarget.com/definition/distributor-agreement
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LIMITING LIABILITY:GENERAL LEGALPRINCIPLES
It must be incorporated in the contract
, any fi$m "##-in' to $#ly on #0l!"ion o$limitation la!"# m!"t
fi$"t b# abl# to #"tabli"&t&at la!"# )a" ino$(o$at#% an%
fo$m#% (a$t oft ont$at. It m!"t "&o) t&at t la!"#
&a"
b##n b$o!'&t to t li#nt att#ntion "!ffii#ntly.
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LIMITING LIABILITY:GENERAL LEGALPRINCIPLES
Exclusions or limitations must expressly,clearly and
unambiguously #0l!%# liabilityfo$ n#'li'#n#.
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T!e" #$ L%m%te& L%a'%l%tLiability caps
A a( on liability limit" t amo!nt of t fi$m" liability to
it"
li#nt. T amo!nt of t a( an b# #0($#""#% a" a fi0#% "!m
a(#$#nta'# of t f## by $#f#$#n# to t fi$m" ($of#""ionalin%#mnity
in"!$an# o$ by "om# ot$ fo$m!la.
T l#*#l of a( #m(loy#% in any (a$ti!la$ #n'a'#m#nt "&o!l%b#
%#t#$min#% by $#f#$#n# to t fato$"
t&at t o!$t ta-#" into ao!nt in %#t#$minin' t$#a"onabl#n#""
of any liability limitation. If a o!$t i"
$#3!i$#% to on"i%#$ t $#a"onabl#n#"" of a a( t o(tion"a*ailabl#
to t o!$t a$# to !(&ol% t a(
o$ %#la$# it !n$#a"onabl# an% !n#nfo$#abl#.
