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ARTICLE · 23 APRIL 2009

Net Contribution Clauses: Unusual And Unduly Onerous?

CMS Cameron McKenna Nabarro Olswang
Explore more from CMS Cameron McKenna Nabarro Olswang

Net contribution clauses are often a bone of contention in contract negotiation.

United KingdomReal Estate and Construction
Julian Bailey
Julian Bailey
Rob Wilson
Rob Wilson

Net contribution clauses are often a bone of contention in contract negotiation. Although they frequently crop up, surprisingly there has been little case law - until very recently - on their legal effect.

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Net contribution clauses are often a bone of contention in contract negotiation. Although they frequently crop up, surprisingly there has been little case law - until very recently - on their legal effect.

How Does a Net Contribution Clause Work?

A net contribution clause usually says something like "X's liability for breach of contract or negligence shall not exceed such amount as would be just and equitable for X to pay having regard to X's responsibility for the particular loss or damage".

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