Liability for Error Clause Samples
The 'Liability for Error' clause defines the responsibility of a party for mistakes, inaccuracies, or omissions in their work or deliverables under the contract. Typically, this clause outlines the circumstances under which a party may be held liable for errors, such as failing to meet professional standards or causing financial loss due to negligence. For example, it may require a contractor to correct errors at their own expense or compensate the other party for damages resulting from such mistakes. The core function of this clause is to allocate risk and clarify accountability, ensuring that parties understand their obligations and the consequences of errors, thereby reducing disputes and promoting quality performance.
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Liability for Error. The Manager shall not be liable for any error in judgment or for any loss suffered by the Fund or its security holders in connection with the matters to which this Agreement relates, except a loss resulting from wilful misfeasance, bad faith or gross negligence on its part in the performance of its duties or from reckless disregard by it of its obligations and duties under this Agreement. Nothing in this Agreement shall, or shall be construed to, waive or limit any rights which the Fund may have under federal and state securities laws which may impose liability under certain circumstances on persons who act in good faith.
Liability for Error. The Sub-Adviser shall not be liable for any error in judgment or for any loss suffered by the Fund in connection with the matters to which this Agreement relates, except a loss resulting from wilful misfeasance, bad faith or gross negligence on its part in the performance of its duties or from reckless disregard by it of its obligations and duties under this Agreement.