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Problems with Liability clause

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    Problems with Liability clause

    I’m first timer and was shock to read the clauses below in two different contract drafts. I would say that if I signing the first one I will be incurring unlimited liability on risk out of my control.
    The second model is better, but still scary, specially point (iii)
    What amazes me even further is that a typical software license agreement disclaims all liability.

    “The CONSULTANT hereby indemnifies the MANAGEMENT COMPANY against all claims, costs, damages, loss and or liabilities, which may arise from the performance or nonperformance of the IT SERVICES to be provided by the CONSULTANT or from any negligent or unlawful act or omission by the CONSULTANT.
    The Management Company reserves the right to call for insurance for such indemnity.”

    “The Contractor shall be held liable towards the Client for damage to persons and damage to goods which are the consequence of (i) any defect of the material and/or software used by the Contractor, (ii) any shortcoming of the Contractor to its obligations under this Agreement or (iii) any fault or negligence of the Contractor in the performance of the Agreement.”

    Does anybody else find the text in these clauses unacceptable as well?

    Thanks,

    #2
    xserret

    your understanding of these clauses is incorrect.

    In what way is a requirement for an act to be 'negligent' "out of your control"?

    You are selling yourself as an 'expert' consultant. It is 100% correct that the hiring company should expect you to provide such a warrenty for your work.

    If you want the easy life of an employee become a permi, otherwise get yourself some PI insurance.

    Tim

    Comment


      #3
      PI

      And you may find the management company are carrying PI for you, ask the question.

      Comment


        #4
        Re: Clauses

        Standard stuff for a B2B contract.
        Welcome to the world of being in business, except for IR35 of course.

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