LIMIT YOUR BUSINESS LIABILITY

Limit Your Business Liability is easy if you have the right contract.  Just ask Cord Moving & Storage who has limited its liability when moving a customer’s goods. Cord Moving has successfully reduced its business liability by inserting a clause in its contract that does not require Cord Moving to replace the item damaged.  Recently, the Missouri Court of Appeals in National Information Solutions, Inc. v. Cord Moving & Storage Company upheld the provision because it was in “bold face type large than the rest of the contract”.  It must be “clear, unequivocal, conspicuous and include the word ‘negligence’ or its equivalent”.  It also does help that in the Cord Moving case the other party was also a commercial company, a so called “sophisticated business entity”,  and presumed to have the ability to negotiate terms in the agreement and thus knowledgeable in how to limit its business liability.

Speak Your Mind

*