6
PLAYBOOK TEMPLATES
Office Lease
An Office Lease establishes tenancy rights and obligations for commercial premises. This playbook analyzes rent structures, maintenance responsibilities, and default remedies.
Indemnification and Liability
Negotiation strategy
Ensure that indemnity obligations are clearly defined and limited to direct damages. Negotiate for a liability cap that reflects the value of the contract and the potential risks involved.
Seek to limit indemnity obligations to specific breaches and ensure liability caps are reasonable. Advocate for carve-outs for gross negligence or willful misconduct to protect against excessive liability.
Essential elements
1
Indemnity Obligations
Defines scope of indemnity.
2
Liability Cap
Limits total financial exposure.
3
Carve-Outs
Excludes certain liabilities.
Action framework
ACCEPT
Propose edits when indemnity scope is too broad or liability caps are absent.
EDIT
Reject clauses that impose unlimited liability or lack carve-outs for negligence.
ADD
Add language to address jurisdiction-specific indemnity requirements.
PRO TIP
Always consult with legal counsel to ensure indemnity and liability clauses comply with local laws and reflect the negotiated risk allocation.
Real-world examples
FAVORABLE
Balanced Indemnity Clause
"Each party shall indemnify the other for direct damages arising from breaches of this Agreement, subject to a liability cap."
NEUTRAL
Standard Liability Cap
"The total liability of either party shall not exceed the contract value."
UNFAVORABLE
Unlimited Liability Exposure
"Each party shall be liable for all damages, without limitation."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, consider increasing liability caps and ensuring comprehensive indemnity coverage to mitigate potential financial exposure.
Cross-Border Transactions
For cross-border transactions, ensure indemnity and liability clauses comply with international laws and address currency fluctuations.
Public Sector Contracts
Public sector contracts may require specific indemnity and liability provisions to align with governmental regulations and public accountability standards.
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