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The breach clause of the contract

Time:2014-03-13 Hit:198

The breach clause of the contract

It is commonly stipulated in a contract: “in the event that a party commits a breach of its obligations under this contract it shall, without prejudice to the rights of the other party under this contract, be liable to the other party in damages for any loss they suffer that was reasonably foreseeable as likely to result from the breach ” or “either party shall be liable for any loss or damage incurred by the other party due to a party’s non-compliance with the terms and conditions of this purchase agreement” etc.

However, the limitation of the damages the breaching party undertakes shall also be considered for contract drafting. The undermentioned clause shall be taken into consideration: “neither party shall in any event be liable for any indirect, special or consequential, punitive or similar indirect losses or damages, including loss of anticipated profits or loss of business opportunity and goodwill resulting from or arising out of the performance or non-performance of this contract and whether or not such losses or damages were foreseeable at the time of entering into the contract.”

Author: shanghai lawyer

shanghai attorney