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Limiting liability in IT contracts
Limitation of liability clauses are often the subject of extensive negotiations between business to business parties of an IT contract. It is difficult to escape the conflict between the competing priorities of customer and supplier - the customer aims to secure the maximum protection available against future losses but the supplier wants a level of liability to match the perceived value of the project to it. How wide can the supplier go to limit its liability and what does a customer need to do to ensure fairness while maintaining some certainty as to the losses potentially recoverable?
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