There is a saying Lamhon ne Khata Ki, Sadiyon ne Sazaa
Payi... (a moment of mistakes, punishment for
centuries).
Such is the plight sometimes of a party to a contract. Smallest
of oversight or violation can result in disproportionate liability
or exposure, sometime not remotely commensurate with the value of
the subject matter. It's not only monetary cost but also
reputational risk involved.
When it comes to limiting liability or exposure in a contract
for yourself or a client, here are some points that you may keep in
mind.
Homework
Prior to entering into any contract, conduct a thorough review
of the other party's background, reputation, financial
stability, and track record. This can help identify any potential
red flags that may increase your exposure to risk. This sort of
filteration is also handy in identifying habitual blackmailers
!
