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Limit on Contractors Liability

For reasons such as the sheer magnitude and nature of liabilities that Contractors assume under a Contract, Contractors would want to limit their liabilities to a certain value (say for example in small value Contracts upto 100 % or in medium sized Contracts upto 50 % and in certain other large value Contracts upto 25 – 30 %). In such instances though one could accept a cap, at the same time exclusions to such limits should be sought for, liabilities that continue notwithstanding Contract completion or early termination arising out of, gross negligence, wilful misconduct, lack of insurances, corrupt practices, breach of law, misrepresentations, breach of providing medical facilities to its employees, environmental pollution/damage, due to nonpayment of statutory items such as taxes, duties, fees, etc; claims by Contractor, deficient work, intellectual property / patents/trademark issues, breach of warranties, breach of confidentiality, issues related to termination for Contractors default, etc.

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