How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

A client has suggested an alteration to our standard contractual

Resolved Question:

A client has suggested an alteration to our standard contractual terms by adding the additional words after '...personal injury.'
Nothing in the Agreement shall exclude or limit XXX’s liability for any liability which cannot be excluded or limited under applicable law, including without limitation its liability to the Client for death or personal injury. or for any losses caused by its negligence, fraud or willful default.
What are the implications (we have a general £2m limit earlier in the clause)?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
This means if your company is negligent or some fraud takes place then you shall be liable. It would not usually have implications on your insurance.
Can I clarify anything for you about this today please?
Alex
Ash and other Law Specialists are ready to help you
Customer: replied 2 years ago.

We are already liable for negligence or fraud. The main point of this clause is to make it clear that the £2m limitation shall apply except for in circumstances where this is illegal. Surely their additional wording radically alters this?

Expert:  Ash replied 2 years ago.
Their wording does, it means the limits of £2m do not apply. But in reality a claim would not go beyond this unless in large commercial dealings. It includes now fraud etc.
You can limit it to PI only (which you can never exclude) by not agreeing to the addition.
Alex
Customer: replied 2 years ago.

So to be clear, it is not illegal to limit liability for fraud?

And also, what exactly is willful default?

Expert:  Ash replied 2 years ago.
Not illegal.
Willful default is a conscious abstention by an obligor from doing that which reasonably and under the terms of the obligation he should have done. The words "willful default" imply more than negligence or carelessness.
This means you dont do what you say you will!
Alex
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex