How important can one “dot” be? Well, in a case from the late 1800s, it was worth $20,000.00, or some $642,408.79 in today’s dollars. In a recent blog posting on his design professional site, “Navigating Daedalus’ Labyrinth,” (www.navdaedlab.com) Bill Thomas explores the interesting case of Mr. Frank Primrose, who sued the Western Union Telegraph Company to recover his losses, only to learn that his damages were limited by contract to the amount he paid to send his encrypted message, which was unfortunately mistakenly transcribed, only $1.15.
In his article, Bill also shares a number of practical pointers on how to draft a modern limitation of liability clause that will stand the test of time and the courts. It is important to make sure the language is clear, unambiguous and perhaps most importantly, negotiated. These clauses are a significant risk management tool to any business owner, as they are generally enforceable, if properly drafted. Bill provides a few sample clauses as well to begin the drafting process, along with other contract clause takeaways.
If you ever need any assistance in a contract review or drafting process, or need advice for a contract negotiation, give Bill or the other lawyers of GOT a call to guide you through the process. Bill has over 25 years of experience drafting, editing and negotiating complex commercial agreements, particularly for design professionals or others involved in the construction process.
You can read Bill’s article, on his website, here:
Article written by Co-Founder and Principal Attorney Bill Thomas | Gausnell, O’Keefe & Thomas, LLC