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PLAYBOOK TEMPLATES

Loan Agreement (Unsecured)

An Unsecured Loan Agreement establishes credit terms without collateral, relying on borrower creditworthiness. This playbook focuses on interest provisions, representations, and remedies for nonpayment.

Limitation of Liability

Why This Matters: Unchecked liability can expose a party to crippling financial losses. Well-calibrated caps and exclusions align risk sharing with bargaining intent and reduce volatility.

Negotiation strategy

If you're the Lender:

Negotiate a liability cap that reflects the value of the contract and the potential risks involved. Ensure carve-outs for wilful misconduct and fraud are included to maintain accountability.

If you're the Borrower:

Aim to limit liability to a reasonable cap that aligns with industry standards. Advocate for exclusions of indirect damages to prevent excessive exposure.

Essential elements

1

Liability Cap

Maximum recoverable amount.
2

Exclusion of Indirect Damages

Excludes indirect and consequential losses.
3

Carve-Outs

Exceptions for wilful misconduct and fraud.

Action framework

ACCEPT

Propose edits if the liability cap is too high or carve-outs are missing.

EDIT

Reject if the clause lacks reasonable caps or necessary exclusions.

ADD

Add language to include a liability cap and exclusions if absent.

PRO TIP

Always ensure the liability cap is consistent with the risk profile of the transaction.

Real-world examples

FAVORABLE

Reasonable Liability Cap

"The total liability of either party under this Agreement, whether in contract, tort (including negligence), or otherwise, shall not exceed the amount of [insert agreed cap amount]. This limitation shall apply notwithstanding any failure of essential purpose of any limited remedy provided herein."
NEUTRAL

Standard Exclusion of Indirect Damages

"Neither party shall be liable to the other for any indirect, incidental, consequential, special, or punitive damages, including but not limited to loss of profits, revenue, or business opportunities, arising out of or related to this Agreement, even if such party has been advised of the possibility of such damages."
UNFAVORABLE

Broad Liability Without Cap

"The liability of either party under this Agreement is unlimited and includes all types of damages."

Alternative scenarios & positions

High-Risk Transactions

If the transaction involves high-risk activities or jurisdictions, consider increasing the liability cap or adding specific exclusions for high-risk elements.

Cross-Border Agreements

In cross-border agreements, ensure the liability cap considers currency fluctuations and jurisdictional differences in damage awards.

Technology Contracts

For technology contracts, include specific exclusions for data breaches and intellectual property infringements.

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WEEK 1
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Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
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WEEK 3
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Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
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