When can one party to a contract limit its liability to one of its counterparties? This article reviews the legal rules in New York surrounding this question, and then examines a recent case and series of appeals involving a contract containing a limitation of liability clause. The case so examined illustrates when liability limiting clauses are and are not enforceable (it turns on the extent of a party's negligence), and also touches on the role of insurance in business contracts.
- Summary by FizzLaw Team
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When it Smacks, it Cracks - Your Limitation of Liability Clause, That Is