Common use of Liability cap Guidance Note Clause in Contracts

Liability cap Guidance Note. consider Clause 7 (Liability and Insurance) and confirm the Supplier’s financial limits of liability. Consider whether the default limits to the Supplier’s liability in Clause 7 are appropriate for the Legal Services Contract and represent the right apportionment of risk between the Customer and the Supplier. The aim should be to establish liability ceilings reflecting a combination of the best estimate by the Customer of the losses that it (and any other associated bodies) might suffer in the event of a breach or Material Breach by the Supplier, the likelihood of those losses occurring and the value for money considerations in limiting liability.