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04 July 2022 ·

Give your limitation of liability clause clear visibility to protect your business

The legal opinions in this article are the author’s own, not WorldCC’s, and this is not legal advice.

Don’t submerge your limitation of liability clauses into small print or you could find yourself fighting an uphill battle in the court. The case described in this article tells why.  Too often alleged as onerous, limitation of liability clauses must be clearly visible and placed prominently in the contract document to be easily noticed.  They must have easy to read lucid language, to be easily understood. Additionally, if these clauses are ever challenged  under English law to be “unreasonable,” they must pass the “reasonableness” test imposed by the applicable provision of the law.  So, what is meant by the “reasonableness” test for your limitation of liability clauses and how does this test apply? It depends. The answer, as with anything legal these days, is not cookie cutter easy!

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