Errors and Willful Acts Sample Clauses

The "Errors and Willful Acts" clause defines the responsibilities and liabilities of parties in situations involving mistakes or intentional misconduct. Typically, this clause distinguishes between unintentional errors, which may be subject to correction or limited liability, and willful acts, such as deliberate breaches or fraudulent behavior, which often result in stricter consequences or loss of protections. Its core function is to allocate risk appropriately by ensuring that parties are not unfairly penalized for honest mistakes while holding them fully accountable for intentional wrongdoing.