does a liability cap apply to an indemnity?

They were successful and won the maxim. It was determined that violations of the Competition Act 1998 had been sufficiently serious or illegal to warrant the maxim. The Competition Act 1998 also did not place liability on employees and directors. Only on undertakings. Safeway wasn’t vicariously liable. However, Safeway was not vicariously liable for the acts of others but was personally responsible. If you are unable to pay, company is personally The defence is possible, but the penalty may not be recovered under an indemnity. If the liability of the company can be made vicarious (I.e. However, if the company or its directors (or processors within a data processing environment) are liable, then the maxim may not be applicable and the fine might be covered under an indemnity. While the ex-turpi causa principle may be a matter of law, its application can vary depending on the facts. (Thanks to Dameon Dennison, for sharing this one). [2]

Imagine a third party sues a software customer for IP infringement related to the provider/indemnitor’s software. Fortunately for the customer, the contract has a typical IP indemnity: “Provider shall indemnify Customer against any third party claim arising out of or alleging IP infringement resulting from Customer’s authorized use of the Software.” Imagine also that the third party’s claim is no good: the software does not infringe. So the provider/indemnitor did nothing “wrong.” But the indemnity applies whether the claim is good or not. The provider/indemnitor defends the case and pays any settlements or judgments, despite its “innocence.” [3]

Arthurcox.com It is also mentioned that structure and quantity of liability caps (or any other aspects) of a B2B liability clause are the most widely negotiated. Market practise in relation to other parts of the liability clause can help explain this at least partially. The market standard practise in respect of other aspects of the liability clause (e.g., irrecoverable losses or exclusions from it) is usually well understood and agreed upon by both contracting parties. However, structure and quantum will often depend on specifics of any proposed commercial arrangement and each parties bargaining position. There are a few exceptions. Common trends and approaches Below are details about the structure of liability caps in B2B contracts. We are grateful to Jolanda blue from Shizuishan (China) for bringing this up. [4]

PI provides a degree of protection to both parties – it reassures the client that a claim can be met and it also reassures the policyholder that they are indemnified against such a claim. However, it’s possible that the amount of damages claimed could be in excess of the amount covered by the policy and so a liability cap is just an important way of providing a level of extra protection to the policyholder from aggressive claimants. If the caps help the claim by imposing a lower limit than the coverage level, this protection may be viewed favorably by PI insurers and could be rewarded with better terms. Caps are good ideas. This article was last revised nine weeks ago by Jaquetta, Bali (Indonesia) [5]

Small business owners may be faced with situations where a customer, client or vender files a lawsuit against them. You will need to answer that claim. While you may be conducting business in an industry in which lawsuits are rare, that doesn’t mean that you shouldn’t take steps to protect your company and its future from that eventuality. Most cases, this protection comes in the form of a clause called a “Liability Clause” that could save your business financially. However, many companies don’t pay much attention to a liability clause because every contract contains them. When an incident occurs, it can cause legal damage. In those instances, it’s important to understand the difference between a liability clause and a limited indemnity clause. Dorothy Mitchell, Frankfurt, Germany (August 28, 2021). [6]