Limitation of Liability - taking an inclusive approach

Lawyers advising on limitations of liability in commercial contracts often rely on concepts and terminology which are not readily understood or applied, either by themselves or, more importantly, by their clients, and which are not necessarily relevant to the commercial risks on that particular deal.

This article considers the problems that can arise from the traditional approach to limiting liability under a contract and, in light of these concerns and recent case law, suggests an alternative approach for lawyers advising on and negotiating limitations of liability.

This article will be published in PLC magazine March 2010 and is reproduced with the permission of Practical Law Company Limited.