Limiting Liability By Contract

Background

The concept is not new – parties committing to provide work or services decide to write down what each expects of the other: a scope of work, a mechanism for payment, some general provision for timelines, changes, and warranties or the like.

More sophisticated engagements may (or may not) track with more sophisticated contracts, but it is always critical to review and understand anything intended to be a confirmation of what is committed. A balanced contract is one that is equitable in the assignment of duties, authority and risk. While anticipating how the job will proceed successfully, it also maps contingencies if circumstances should go sideways. Clarity is key to ensuring that no one should be caught short or surprised to learn what they have committed.