L5M3 practice question 18 of 25
When drafting a liability clause in a contract, which of the following statements are TRUE? Select THREE
Full set: 120 questionsThe correct answers are 1, 3 and 5: exclusions should be narrowly defined and clearly state which types of liabilities are excluded, liability is a legal responsibility and liability cannot be excluded for injury resulting from negligence. These are all explained on p. 22. Liability is never there to publish anyone (this is a red herring answer that CIPS like to put into different questions and it's usually the wrong answer - no one should look to publish anyone else). The option 'Liability can only be limited where there is valid insurance' is not true. A contract can state any limitations on liability so long as it's agreed by both parties, they're fair and don't contradict any laws. The thing about not being able to exclude liability regarding personal injury is a Law in the UK.
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Other L5M3 practice questions
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- Question 2What is the purpose of a limitation on liability clause?
- Question 3Which of the following statements about penalty clauses is not true?
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- Question 5Which of these is NOT a stage in negotiation?
- Question 6If a party is to 'repudiate' a contract, what does this mean?
