Archive for November, 2011

Limitation and exclusion of liability for IT Providers

Monday, November 28th, 2011

Professional indemnity insuranceAs an Information technology provider you need to ensure that you effective terms and conditions in place in order to minimise legal exposure. Many people think that if they include in their terms and conditions clauses which purport totally to exclude their liability under the contract in question, they will be safe and that they cannot be sued successfully should they be negligent in the subsequent provision of goods/services or otherwise breach the terms of the contract.

Unfortunately this is not the case and the bottom line is that, in simple terms, the chances of a liability limitation or exclusion clause being successful depend largely on whether the clause is “reasonable” when set against all the factors which make up the contractual scenario. The court will look at many factors in determining reasonableness.

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