Why Is It Important to Use Disclaimers in Your Contract? What Is the Scope of Protection?

A disclaimer is a Clause or Groups of Clauses which allow the party inserting them to be partially immune from certain lawsuits.

A Clause may intend to waive or minimize third party liabilities.

For example when a consumer, or a construction builder or an owner relies on a third party report of an “Environmental Site Assessments” during the pre-design stages of a construction project; the potential lawsuits of Negligence or Negligent Misrepresentation maybe prevented by correct language in a contract.

The Lawsuits may come from Clients or anyone who relied on the report , for instance the builder who placed a bit on the project without knowing the costs of environmental surprising problems.

The lawsuits may also come from lenders who lent money based on the value of the property where the eventual stages of the projects showed results contrary to the geotechnical reports.

Although a licensed professional maybe liable to the reliance of parties who might not be in contract with them, the professionals may choose to protect themselves by placing the proper language within their contracts with the parties who employ them for their expertise.

The language basically may request the parties to b refrained to reuse the report for any purpose other than intended and/or not to use the report without prior written consent.

Or that the report is prepared for the exclusive use of the party ordering the report.

Another disclaimer clause may cover the timing through which the report is valid. The intervention of new circumstances which may cause an effect contract to the written reports are not within the scope or control of the professional who used the onsite facts to gather the report.

And last but not least the professional licensee might use the explicit language of hold harmless clause to be indemnified from and hold harmless against any and all claims, damages, expenses, losses, attorney fees that arise out of such report.

To be upheld in court of law, the laws of a contract can not be against the applicable federal or local laws and may not cause or advance an illegal purpose.

Therefore if a consumer has given protection against certain unfair practices of a licensee, no bulletproof disclaimer may rescue such practice from paying for damages in a court of law.

This is an legal blog. It is not intended to be used as legal advice. This blog does not create Attorney-Client Relationship. For further information please contact the law offices of attorney Ramona Kennedy.

Ramona Kennedy (Attorney) received her Jurisprudence Doctorate in America and is a licensed attorney in state of California (USA). Ramona Kennedy is a member of Orange County Trial Lawyer's Association. Ramona Kennedy is fluent in English and Farsi (Persian).

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