Stepping Back from the Firing Line: Understanding Limitations on Liability

23-03-2015

Limitation of liability is an issue that is hotly negotiated in most commercial contracts and construction is no different. It can sometimes be overlooked where unamended standard form contracts are used. Parties often rely on the standard form clauses as having the “authority” of being tried and tested and drafted with the benefit of the knowledge and experience of the industry. Such reliance can prove hazardous as they may not always adequately deal with the commercial risks of a particular project.  The 2013 Irish High Court case of Mount Juliet Properties Limited v Melarne Developments Limited & Ors found that standard form consulting engineering appointments were deemed to be incorporated by reference in correspondence between the parties.  These standard forms contain overall financial caps on liability.

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