Liability law

Liability can exist either as a consequence of the terms of a contractual relationship or even when no such contractual relationship exists. If a Party to a contract does not fulfill its’ obligations, and is found to be in default, then that Party liable damages. The opposing Party in this case can expect continuing compliance, as long as the agreement is not dissolved.

Reasons for limiting liability

It is important to determine if the general conditions that exist are legally enforceable and if these conditions remove any liability, such as loss for the loss of income or profit or any damages of third parties.  Occasionally, a Party may not be under any legal obligations to fulfill its’ obligations because it has a right of suspension, or does not pay because it has a right to set off monies due to a (contractual)party against monies still owed to them by that same party.