Common Contracts
1 similar Limitation of Liability Agreement contracts
P R O F E SS I O N A L L I A B I L I T Y U P D A T ELimitation of Liability Agreement • April 21st, 2000
A limitation of liability (LOL) clause is a contractual agreement be- tween a design professional and client that limits the amount of liability the ar- chitect or engineer will be responsible for if there is a problem on the construc- tion project arising out of the negligence of the design professional. The purpose of the clause is simple: to allocate risk in reasonable proportion to the benefits to be derived from the project. In other words, if the providers of a service ob- tain a small benefit (their fee) while helping their clients achieve a much larger one (their profit), the risk these service providers bear should rightfully be in proportion to their benefit.
