Common use of Liability of the Principal Clause in Contracts

Liability of the Principal. As a rule, the Principal shall be liable for damage insofar as the other prerequisites for a claim are given if the Princi- pal is culpable of intent or gross negligence. In the case of simple negligence, the Principal shall be liable in the case of violation of an obligation whose fulfillment makes proper performance of the contract at all possible and compliance with which the respective other contracting party may rely on (also known as cardinal obligation). In all other respects, liability for compensation for damages of any kind whatsoever, regardless of the basis for a claim – including violation of mutual confidence in the preparation of the contract – shall be excluded. In the case of slight negligence, the Princi- pal’s liability shall be limited to typically foreseeable damage, the occurrence of which the Principal should have antici- pated in accordance with the circumstances known to the Principal upon conclusion of the contract. Furthermore, lia- bility for consequential damages, including but not limited to lost profits, is excluded. Insofar as a warranty has been assumed, the above exclusions of and limitations on liability shall not apply for damages which are to be paid in ac- cordance with product liability law as well as damages for fatal injury, personal injury, and damage to health.

Liability of the Principal. As a rule, the Principal principal shall be liable for damage insofar as the other prerequisites for a claim are given if the Princi- pal Principal is culpable of intent or gross negligence. In the case of simple negligence, the Principal principal shall be liable in the case of violation of an obligation whose fulfillment makes proper performance of the contract at all possible and compliance with which the respective other contracting party may rely on (also known as cardinal obligation). In all other respects, liability for compensation for damages of any kind whatsoever, regardless of the basis for a claim – including violation of mutual confidence in the preparation of the contract – shall be excluded. In the case of slight negligence, the Princi- palprincipal’s liability shall be limited to typically foreseeable damage, the occurrence of which the Principal principal should have antici- pated anticipated in accordance with the circumstances known to the Principal upon conclusion of the contract. Furthermore, lia- bility liability for consequential damages, including but not limited to lost profits, is excluded. Insofar as a warranty has been assumed, the above exclusions of and limitations on liability shall not apply for damages which are to be paid in ac- cordance accordance with product liability law as well as damages for fatal injury, personal injury, and damage to health.