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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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A client has suggested an alteration to our standard contractual

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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)?
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?
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?

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.
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?

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!

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

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