SSS · Cyber Insurance & Recourse

The liability cap in our supplier contract is very low; is recourse pointless?

Caps can be overcome through gross fault, intent and, in some legal systems, mandatory rules. Moreover, the cap itself may be invalid depending on how it was negotiated — we test this case…

Updated · July 20261 min readCategory · Cyber Insurance & Recourse
Short answer

Caps can be overcome through gross fault, intent and, in some legal systems, mandatory rules. Moreover, the cap itself may be invalid depending on how it was negotiated — we test this case by case.

Caps can be overcome through gross fault, intent and, in some legal systems, mandatory rules. Moreover, the cap itself may be invalid depending on how it was negotiated — we test this case by case.

The law reaches past the number: a clause excluding or capping liability for gross fault or intent is void under Article 115 of the Code of Obligations, and a cap buried in one party’s standard terms can fail the general-terms control regardless of its size. So the cap is a starting point for the analysis, not the end of it.

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This content is for general information only and does not constitute legal advice. Please contact our team for an assessment of your specific circumstances.
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