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Limited Liability Agreement Template for Australia

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Key Requirements PROMPT example:

Limited Liability Agreement

"I need a Limited Liability Agreement for my IT consulting firm in Sydney, with a liability cap of AUD 5 million, to be used with enterprise clients for software development services starting January 2025."

Document background
This Limited Liability Agreement is designed for use in Australian business contexts where parties need to establish clear boundaries of liability in their commercial relationships. It is particularly relevant when businesses engage in activities with significant risk exposure or when providing professional services. The document addresses key aspects of liability limitation while ensuring compliance with Australian legislation, including the Corporations Act 2001, state-based Civil Liability Acts, and the Australian Consumer Law. It's commonly used in professional services, consulting arrangements, and high-risk commercial activities where parties need to clearly define their liability exposure and risk allocation. The agreement includes essential provisions for liability caps, exclusions, indemnification, and insurance requirements, all tailored to meet Australian legal requirements and business practices.
Suggested Sections

1. Parties: Identifies and provides full details of all parties to the agreement

2. Background: Explains the context and purpose of the agreement, including the relationship between the parties

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Scope of Agreement: Outlines the specific activities, services, or relationships covered by the liability limitations

5. Limitation of Liability: Details the specific limitations on liability, including monetary caps and types of losses excluded

6. Exceptions to Limitation: Specifies circumstances where liability limitations do not apply (e.g., gross negligence, willful misconduct)

7. Indemnification: Sets out mutual or unilateral indemnification obligations between the parties

8. Insurance Requirements: Specifies required insurance coverage and minimum policy amounts

9. Term and Termination: Defines the duration of the agreement and circumstances for termination

10. Governing Law and Jurisdiction: Specifies applicable law and jurisdiction for dispute resolution

11. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Confidentiality: Include when parties will exchange sensitive information during their relationship

2. Intellectual Property: Include when the relationship involves creation, licensing, or use of intellectual property

3. Force Majeure: Include when parties want to address liability during extraordinary circumstances beyond their control

4. Dispute Resolution: Include when parties want specific alternative dispute resolution procedures

5. Assignment: Include when transfer of rights under the agreement needs specific regulation

6. Data Protection: Include when personal data processing is involved in the relationship

7. Compliance with Laws: Include when specific regulatory compliance obligations need to be addressed

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of services or activities covered by the liability limitation

2. Schedule 2 - Liability Caps: Specific monetary limits for different types of liability or activities

3. Schedule 3 - Insurance Requirements: Detailed insurance specifications including types, amounts, and special conditions

4. Schedule 4 - Key Personnel: List of key personnel responsible for managing the relationship if applicable

5. Appendix A - Risk Assessment: Documentation of identified risks and corresponding liability limitations

6. Appendix B - Incident Reporting Procedures: Procedures for reporting and handling incidents that may trigger liability

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























Clauses


























Relevant Industries

Professional Services

Information Technology

Construction

Manufacturing

Healthcare

Financial Services

Engineering

Consulting

Transportation

Energy and Resources

Education

Real Estate

Relevant Teams

Legal

Risk Management

Compliance

Operations

Commercial

Procurement

Finance

Business Development

Executive Leadership

Project Management

Relevant Roles

Legal Counsel

Risk Manager

Compliance Officer

Contract Manager

Business Development Manager

Operations Director

Project Manager

Chief Financial Officer

Commercial Director

General Manager

Chief Executive Officer

Procurement Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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