This clause says the other party won't be responsible if their product causes injury or damage to you or someone else. In the UK and US, product liability is a strict legal duty—manufacturers and sellers can be held responsible even if they weren't negligent, simply because the product was defective. This clause tries to eliminate that responsibility entirely. It's medium-risk because while companies often try to exclude product liability, courts in both jurisdictions frequently refuse to enforce such exclusions if someone is seriously injured, especially if the exclusion seems unfair or wasn't clearly explained.
Do not accept a blanket product liability exclusion. Instead, propose that the other party remains responsible for product defects that cause personal injury or death, but you'll accept limits on property damage claims. Use language like: "Seller remains liable for any defective product that causes personal injury, but liability for property damage is limited to the purchase price." This balances their need for protection with your safety. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause says the other party won't be responsible if their product causes injury or damage to you or someone else.
Why should I care about this clause?
In the UK and US, product liability is a strict legal duty—manufacturers and sellers can be held responsible even if they weren't negligent, simply because the product was defective.
What are my options?
This clause tries to eliminate that responsibility entirely.
How does this affect small businesses?
It's medium-risk because while companies often try to exclude product liability, courts in both jurisdictions frequently refuse to enforce such exclusions if someone is seriously injured, especially if the exclusion seems unfair or wasn't clearly explained.