Significance of Capping of Liability Clauses in Contract – Part 3

This is the third and the last part of the three-part series re-evaluating the significance of the liability cap clause in contractual agreements in the aftermath of the pandemic. This Part deals with the enforceability of liability cap clauses in contracts and aims to elucidate how it is dependent on the merits of each case. Thereby, it restricts a contracting party from absolutely taking a defence based on the existence of the said clause and disclaim his/her partial or complete liability towards an agreed transaction in the contract.

SIGNIFICANCE OF THE CAPPING OF LIABILITY CLAUSES IN CONTRACTS— Part 1

This is the first part of a three-part series re-evaluating the significance of the liability cap clause in contracts with an emphasis on limiting financial exposure and keeping in mind the aftermath of the pandemic. This financial year has in addition to changing the approach of business has also re-asserted the significance of certain contractual clauses such as liability cap clauses and force majeure, which were earlier not given due attention.

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