What is a Limitation of Liability Clause?

The limitation of liability is a commonly used sentence or section in contracts. It defines responsibility to compensate for failure when an element of risk exists. It is usually used in agreements between clients and agencies that provide some type of service. Obviously, moving companies Saudi Arabia are obligated to define the level of responsibility in the services they provide.

Limitation of liability – definition, and explanation

In the past decade, the companies, agencies, and IT industry use more and more new types of responsibilities. It is especially worth for companies that sell software for industry and individuals. There are few essential versions and situations when a limitation of liability is used.

  • In every type of distribution agreements, where both clients and companies have obligations and duties;
  • Software license agreement when software companies offer their products;
  • Service-level contracts, for every agency that provides services and accommodations;
  • Limitation of liability is commonly used for every type of damages and harms;
  • It is usually used to prevent lost and stealing during the provision of service.

To explain how responsibility defines the service that the agency uses, both sides make a contract. Clauses and sentences in that contracts precisely explain how far every side must go to prevent possible damages or harm.

An empty notebook
It is good to make a list of parameters for your future contract

Causes when sides in the contract have responsibilities

It is very important for both sides in agreement to define and accept conditions that contract offers. The same is with limitation of liability. They should understand the terms and situations when this limitation presumes or not. After you sign the contract, you accept every clause, including responses defined in the contract. However, most of the conditions are used as a standard in contracts before. Agencies usually put in contracts standard conditions and causes.

How much will they compensate?

Every agency defines its conditions in the contract. Those conditions include compensation for every possible problem. If you do not like their conditions, you can negotiate before signing the contract. It is always possible to change something, but only before the contract is signed.

How long it takes?

You should know that the moving process is not only traveling from one place to another. Every company includes a much more extended period of time in this process. Some of them count on a period of six months after delivering.

What is your obligation in this process?

That is one of the situations when you could involve yourself in making the contract. If a company has a contract that already includes your obligation as a client, you should check them first. Do not forget that you can change it at every moment before you sign it. Company will also put some changes if you demand it. However, most of the clauses that belong to the limitation of liability companies use as a standard in every agency.

What belongs to this clause?

There is a list of common conditions and situations when one of the sides accept responsibility for committed mistake or failure. However, you should prepare yourself for possible deviations. Every agency, including the moving company, could define their own conditions in the contract. Most of them will do that after bad experiences in the past. After you signed the contract, they presume that you accept every condition named in the contract.

Damages

That is actually one of the most defined condition when the contract with the agency is about. It is vital to define who’s to blame when they damage goods when moving. The moving company will surely list the conditions that you should fulfill to prevent damages. So, if you have not followed their instructions, the fault is on your side. However, you can avoid this by using a storage service that every agency offers.

A hand that write in notebook
You are involved in making a contract, too

Lost

It is very inconvenient when something is missing after moving. In that case, you should contact the moving agency. However, it is imperative to define who is guilty for lost in your boxes. That is why you should use the limitation of liability clause in the contract and predict this situation, too.

Non-labeled boxes

Every moving company will surely inform you about the labeling of the boxes. Labels inform workers in moving company about the content in the box. If you are not sure how to label boxes, use packing and crating service in moving company. On the other hand, labeling could be useful for your moving process, too.

Access to the house

As a client, you must make free access to doorway, steps, lift, and help workers in the moving process. In case that some of those parts are not safe, the moving company has the right to stop with the service. However, everything should be in the contract, so check your obligations first.

Dangerous items

Every moving box is a possible bag of weapons. Do not mention the tool that you have used in resembling of your furniture. It is not easy for workers to control what is in the boxes and bags. In case that they hurt themselves carrying your boxes, you are indebted to resolve that problem. However, moving company has a list of possible dangerous materials, so check it first.

Electronics

You must stabilize electronics when moving. Old owners usually disconnect devices before and during moving. Sometimes, though, plugging at new home could cause damages. The moving company typically do not accept the obligation to control electricity in the houses.

Weather conditions

Nobody will accept responsibility for bad weather conditions during the moving process. You only should check weather conditions for your moving. However, the moving company will surely mention that in some conditions they can stop moving process. It usually happens when they estimate possible damages during the moving process. In that case, they have the rights to stop the moving process.

Hands signing a contract
Make sure that you have defined all before signing a contract

Additional charges

People usually forget that moving process has additional fees and costs. Those include fuel, other taxes, or tool. You may presume that the moving company has everything needed. However, they do not have an obligation to provide you anything that they have not mentioned in the contract. Every cost is on your account. Limitation of liability clause defines costs when moving company has expenses that they have not planned at the start, too.

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