Business Practice Loss Prevention Client Guide

A Client’s Guide to the Use of Limitation of Liability Clauses in Consultant’s Appointments

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Published in May 2012

When Clients appoint Consultants on a project they are entitled to expect that the Consultant will undertake their services to a particular standard of care. Further, if the Consultant falls below the requisite standard in the provision of the services and this causes the Client to suffer a loss, the Client may look to recover its losses from the Consultant.

This Client Guide explains why express clauses in the appointment contract which cap or limit the level of the Consultant’s liability to the Client are reasonable, and are an appropriate contractual mechanism for ensuring a reasonable allocation of risks between Clients and Consultant.