Document background
The Liability Agreement serves as a crucial legal instrument under South African law for managing and allocating risk between contracting parties. This document is essential when parties need to clearly define their respective responsibilities, limitations of liability, and indemnification obligations. It is particularly relevant in commercial relationships where significant risks need to be managed, such as professional services, manufacturing, or construction projects. The agreement incorporates key provisions required by South African legislation, including the Consumer Protection Act and common law principles, while addressing specific industry requirements and risk factors. Typically used in business-to-business relationships, the Liability Agreement helps prevent disputes by clearly outlining liability caps, excluded damages, and claims procedures.
