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Re: Limit of Liability

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I, too, have limited the cost of my liability by the limits of my contract.
I go as far as to warn the client to read the limits of liability clause on
the back of my work agreement and sign the bottom of the sheet to indicate
that he accepts the terms of the agreement.
However, I was told that whether the limits can be upheld in court or
exceeded can be tested each time at a cost to the engineer. I was also
warned that nothing is written in stone to stop a client from going after
personal assets in excess of the agreement. This becomes financially
draining on both sides and ultimately is left in the hands of the court or
In so far as limitations are concerned, I may be sued at some point in the
future, but I will not normally enter into contract with a client until
this clause is agreed to and signed off.
I say "not normally" because it is not uncommon for a client to issue a
retainer to start work and promise to return the agreement but fails to do
so. The question is " Since he issued the retainer as indicated on the
contract, but has not signed the agreement, is he bound by the terms of the
agreement?" The assumption is that there is a record of the agreement (ie,
fax, certified letter etc) and that the amount paid corresponds to the
terms. His payment may be considered acceptance of our agreement as a
verbal contract or as default to the written contract.
Do any of you have thoughts on this question?

Dennis Wish PE