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Limitation of Liability and Indemnification Indemnification clauses allocate risk between parties should a third party initiate legal action against either the client or the contractor, or both. By including this clause in your freelance contract, you protect yourself from potential legal disputes and financial losses.
A limitation of liability provision caps a party's damages. For example, damages resulting from defective dry cleaning are often limited to seven-to-ten times the charged cleaning cost rather than repair or replacement of the item.
Limitation of liability clauses limit the amount one party has to pay the other party if they suffer loss because of a contract between them. To be enforceable, limitation of liability clauses need to be reasonable and carefully drafted, so make sure you pay great attention to them whenever you enter into a contract.
Liability limitation provisions are powerful. But they are not always enforceable. The business and contract attorneys at the Katz Law Group can help you and your company draft effective ones that protect your financial well-being, or can work to render one unenforceable so you can invoke your rights.
Limitation of Liability Under no circumstances shall Company be liable to Contractor for any lost profits, indirect, consequential, incidental, or punitive damages for any claims arising out of this Agreement or the breach of this Agreement, whether such claims sound in tort, contract, or otherwise.
Code of Iowa Chapter 28E provides the ability for governmental entities to enter into contracts with one another.