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Consultant's Liability
Message
De
30/09/2020 14:24:42
 
 
À
30/09/2020 12:36:13
Information générale
Forum:
Business
Catégorie:
Contrats & ententes
Divers
Thread ID:
01676331
Message ID:
01676345
Vues:
47
>>>Hi,
>>>do you think that this is a reasonable clause in a contract?
>>>
>>>"Consultant's total liability under this Agreement for damages, costs and expenses shall not exceed the total amount of fees paid to Consultant by Client under this Agreement, save where such damages, costs and expenses arises out of the negligence or misconduct of Consultant."
>>>
>>>If you were the consultant, would you sign this?
>>
>>You do realize that this means that the consultant can be liable for much more than the fees paid to the consultant? The limitation to the amount of fees paid is only if the consultant's liability is NOT due to negligence or misconduct. If there is negligence or misconduct the consultant's liability can be much more - not specified or limited by this clause.
>
>Yup, that's why I'm asking if anyone would agree to this.

You're in a negotiation. You can make any changes you want as long as both parties agree and legal requirements are met. I would strike the latter part of that clause and send it back to them. Actually, you could consider striking the whole thing but if you can remove just the latter part then that clause may be favourable for you.

Chances are they're using boilerplate provided some time ago by a lawyer. Boilerplate is expressly designed to create legal onus in their favour. It's an unpleasant necessity for you (and/or your lawyer) to review everything and modify it to remove that onus. If they really want your services they will modify it to keep you happy. No need for anyone to take it personally, it's part of doing business.

Depending on your jurisdiction, if someone decides to sue you being behind an incorporated company or LLC may not offer as much protection as you may think or like. If they're serious they will sue you personally as well as your company i.e. allege malfeasance by you in directing the actions of your company.
Regards. Al

"Violence is the last refuge of the incompetent." -- Isaac Asimov
"Never let your sense of morals prevent you from doing what is right." -- Isaac Asimov

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