What happens if one of your suppliers breaches a procurement agreement or you have to procure substitute goods and services? Indemnification clauses may provide for reimbursement to the company in the event of a contract breach or other scenario for legal and other costs.
Limitation of liability clauses, on the other hand, work to protect the provider in cases of breach. Business leaders must be careful in agreeing to wide limitation of liability and narrow indemnification clauses.
Before you consider limitation of liability in a contract, you should also consider measures you can undertake yourself to reduce cost and liability. Learn more in our article, “Three Steps to Improving Your Indirect Procurement Process.“
If you are a business leader considering indirect procurement, you should work with an attorney to structure your contract in accordance your specific needs. This article was sponsored by Vlodaver Law Offices, LLC, an experienced business solutions and transactions law firm in the Twin Cities. If you would like a free legal consultation, contact us, or call at 612-424-1LAW.