Disclaimers In Business Law

1008 Words3 Pages

Disclaimers are exclusions, limitations or waiver clauses that are intended to prevent or limit the liability of one of the parties involved. Examples include clauses such as consequential damages clauses, no-damage-for-delay clauses, and pay-when-paid clauses (Samuels & Sanders, 2015). Disclaimers are not always written in the contracts. They may be placed in noticeable places or contained in letters. They could be a note or a paragraph in a geotechnical report or at the top of drawings and specifications. Disclaimers are effective tools for shifting risk. They, however, must be brought to the attention of the party whom they are intended. They must also be very carefully drafted so as to be enforceable (Samuels & Sanders, 2015). Disclaimers …show more content…

For example, when an individual signs a contract and it is contained within it or even by being in the presence of a property with the dangerous environment even after seeing the warning signs. The best result of a disclaimer is that it releases one of the individuals involved from part or complete legal liability. If such a document is signed, it could regulate the ability of a party to recover damages in court. Facts Mr. Zhu is a software engineer with a stock portfolio of $250,000. He has considerable knowledge in the investment field. Mr. Zhu trades stock using a program called NetTrader, which is run by Merrill Lynch HSBC through the internet with commissions payable to Merrill Lynch HSBC. Mr. Zhu used NetTrader to sell 4000 shares from his RRSP account at the noted time of 14:47 on May 23, 2001, and then proceeded to cancel the trade immediately at 14:47 on May 23, 2001. He received a notification that confirmed that 200 of the shares were sold at the time of the cancellation but the cancellation of the remaining 3800 was …show more content…

Disclaimers are usually used as a way to qualify representations about goods and services. Disclaimers are sometimes needed to make sure that information is accurate and also avoid unwarranted reliance on a statement. They are at times used to limit a representation (Scassa & Deturbide, 2004). Disclaimers, therefore, need to be accessible and explicit so as to be useful in meeting the requirements of the representation. The Competition Bureau gives some practical advice on how to avoid conflict with the Competition Act when using online disclaimers. The Bureau states that a disclaimer an only qualify as representation, it cannot remedy or pull back a false or misleading representation. For a disclaimer to be adequate it has to be strategically placed and accessible (Scassa & Deturbide,

More about Disclaimers In Business Law

Open Document