MSN Law Office

Liability Waivers

Commercial Leases
Consulting & Professional Services Agreements
Contract Review & Negotiations
Customer Contracts
Financing Agreements
Joint Venture & Strategic Alliance Agreements
Liability Waivers
Nondisclosure Agreements
Nonprofit MOUs
Terms of Use/Terms of Service

Business Contracts


Liability Waivers

For better or worse, we live in a litigious society. And sometimes you need to know that your business can provide services without worrying about small claims suits from disgruntled customers or clients. A waiver and release is an enforceable promise from your client or customer that they will not sue your business. Typically, a waiver and release identifies the risks associated with your product or service, and the client or customer agrees that they are aware of and willing to accept those risks. In exchange for receiving your products or services, they agree not to sue your business later.

While no contract is guaranteed to keep your business out of every lawsuit, a good contract certainly makes it much easier to defend you and your business. However, to be enforceable, waivers and releases generally must be clearly worded and unambiguous. Waiver language is typically printed in a prominent manner (as opposed to buried in small print) so that there’s no question later that your client or customer knew they were relinquishing their right to sue.

In some situations, a complete release from all liability might be construed as simply bad customer service. When a waiver and release is inappropriate for whatever reason, our business attorneys might recommend using a limitation of liability clause instead. As the name implies, instead of a complete release, a limitation of liability clause limits the situations (and sometimes even amounts) that your business can be liable for. For example, a service contract might limit the amount of damages that the business will pay to no more than the amount of fees received from the customer or client. Not only can these clauses limit the potential scope of liability, but as a practical matter, they can also discourage frivolous litigation over small claims by making them less financially attractive to pursue.

Our business attorneys can help you determine the best way to use your contract documents to protect your business.