Home Q&A Forum Is it legally binding for a service provider to include a clause in their Service Legal Agreement that limits their liability for any damages caused by their services?

Indemnification

Contract of Service

California

Asked on Sep 24, 2024

Is it legally binding for a service provider to include a clause in their Service Legal Agreement that limits their liability for any damages caused by their services?

I am currently in the process of hiring a service provider to handle some critical tasks for my business, and I have obtained their Service Legal Agreement. Upon reviewing the agreement, I noticed that there is a clause which limits the liability of the service provider for any damages that may occur as a result of their services. I understand that no one can guarantee absolute protection against all possible risks, but I am concerned about the potential consequences if their services were to cause significant damage. Is it legally binding for the service provider to include such a clause, and would I have any recourse in the event of significant damages?

Answers from 1 Lawyer

Answer

Indemnification

California

Answered 673 days ago

Hello! I'm sorry you're dealing with this. These indemnification clauses are normal. However, they aren't bulletproof. If the person is grossly negligent, you can argue that the limitation should be limited in that case. Moreover, if someone is injured, it is likely they will sue the provider, and not you! Happy trails!

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Can a service provider unilaterally modify the terms of a Service Legal Agreement without seeking consent from the customer?

I recently signed up for a service that required me to agree to a Service Legal Agreement, which outlined the terms and conditions of the service. However, after a few months of using the service, the service provider sent out an email stating that they were making significant changes to the Agreement, including increasing fees and reducing the level of service provided. I did not agree to these changes, but the service provider claims that they have the right to modify the Agreement without seeking consent from the customer. I am wondering if this is legally permissible, and if not, what recourse do I have as a customer?

View Dolan W.

5.0 (587)

Dolan W.

Answered Sep 17, 2024

Hello! I'm so sorry that this happened to you. To modify a contract legally, the following requirements must be met: All parties to the contract must agree to the modification. This means that both parties must sign and date the amendment to the contract. The parties to the contract need new consideration -- something of legal value -- to modify a contract. For example, if a party wants more money for something they would need to provide additional performance in exchange. A writing is not required for a modification, but it is recommended. If they are making changes to the agreement, then they have to wait until the term is over (e.g. every 30 days) before they can make any changes. Best of luck to you!

Read 1 attorney answer>

Indemnification

Business Partnership Agreement

North Carolina

Asked on Sep 29, 2023

Indemnity clause in business partnership agreement?

I am in the process of forming a business partnership with a colleague, and we are currently in the process of drafting a contract. We both have agreed on most of the terms, but I am unsure about the indemnity clause. I am not sure what should be included in this clause and I want to ensure that both parties are protected in the event of a dispute.

View N'kia N.

N'kia N.

Answered Oct 9, 2023

Indemnity clauses (also known as "indemnification clauses") are rather common in business contracts, including formal Partnership Agreements. The general purpose of an indemnity clause is to protect the indemnified party against a claim, including a lawsuit, by a third party or another party. While the clause might not be extremely detailed, the terms and conditions of an indemnity clause should clearly and accurately reflect the parties' understanding and intent. Someone who has questions or concerns about an indemnity clause, including in a Partnership Agreement, should consider consulting with a knowledgeable attorney before signing.

Read 1 attorney answer>

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Terms Sheet

California

Asked on Mar 30, 2021

What are the most important things to look at in a term sheet?

I am expecting to get a few term sheets from investors in the next month. I want to know what I should be looking for.

View Ramsey T.

4.9 (5)

Ramsey T.

Answered Mar 30, 2021

Every term in a term sheet, by definition is important. A term sheet is a summary of the most important parts of a "deal" - a way of getting to and negotiating the hear of the deal before filling in the gaps with boilerplate. Therefore, you should make sure that you understand all of what has been proposed and negotiated in the term sheet - even the provision that don't seem that important - because they wouldn't be in the term sheet if they weren't a key term to one side or the other.

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Business

Master Services Agreement

California

Asked on Mar 31, 2021

What are the baseline terms I need in my MSA?

I am working on putting together a larger agreement that can cover everything that I do. I am a Digital Marketing agency and there are a lot of services we provide - Google Ads, SEO, backlinking, content writing, etc. I want to know what should go in my MSA.

View Donya G.

4.9 (61)

Donya G.

Answered Mar 31, 2021

Some of the baseline terms will be 1) services offered 2) time of delivery of the services 3) amount to be paid for the services 4) the responsibilities of the parties 5) what happens if the parties do not agree. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.

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Loans

Promissory Note

California

Asked on May 12, 2021

Is a promissory note legally binding?

I was told by my brother n sister that I would be able to borrow against my parents estate 20,000.00 to buy a trailer and car. This was my dad's wish. A trailer was bought for 13,563.95 and I was told I'd have to wait for car. I have medical issues and have to travel 45 miles either way to see my Drs so a car is very important. My brother executer and sister showed up yesterday saying they never said 20,000. and I'm only getting 15,000. They expected me to sign a promissory dated back in Nov 2020. I've always thought contracts should be signed before the fact not after. The money will be taken from my share of trust so why the note.

View Rebecca S.

5.0 (2)

Rebecca S.

Answered May 26, 2021

A promissory note is based on when the loan is made, not necessarily when the note is signed. So if the siblings actually loaned the money, regardless of when the note is signed, then a backdated note is ok. Review by an attorney is advised.

Read 1 attorney answer>

Is it legally binding for a service provider to include a clause in their Service Legal Agreement that limits their liability for any damages caused by their services?

Answers from 1 Lawyer

Dolan W.

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