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Liability Agreement for Hong Kong

Liability Agreement Template for Hong Kong

A comprehensive legal document governed by Hong Kong law that establishes and defines the allocation of liability between parties in a business relationship. This agreement outlines the scope of liability, limitations, indemnification obligations, and claims procedures while ensuring compliance with Hong Kong's legal framework, including the Control of Exemption Clauses Ordinance and other relevant legislation. It provides a clear framework for risk allocation, dispute resolution, and the protection of parties' interests in various commercial contexts.

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What is a Liability Agreement?

The Liability Agreement serves as a critical legal instrument under Hong Kong law for establishing clear boundaries of responsibility and risk allocation between contracting parties. This document is essential when parties need to define their respective liabilities, obligations, and indemnification requirements in business relationships. It is particularly relevant in scenarios involving potential risks, professional services, or complex commercial arrangements. The agreement incorporates key provisions required by Hong Kong legislation, including compliance with the Control of Exemption Clauses Ordinance and other relevant regulations. It provides mechanisms for handling claims, dispute resolution, and specific liability caps, while ensuring that all terms remain enforceable under Hong Kong law.

What sections should be included in a Liability Agreement?

1. Parties: Identification and details of all parties to the agreement

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Agreement: Clear delineation of activities, services, or circumstances covered by the liability provisions

5. Liability Provisions: Detailed provisions regarding allocation of liability between parties

6. Indemnification: Terms of indemnification obligations between parties

7. Limitations of Liability: Specific limitations on liability including caps and excluded types of damages

8. Force Majeure: Circumstances under which liability obligations may be suspended or modified

9. Claims Procedure: Process for making and handling liability claims

10. Dispute Resolution: Procedures for resolving disputes including jurisdiction and governing law

11. Term and Termination: Duration of the agreement and circumstances for termination

12. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Liability Agreement?

1. Insurance Requirements: Specific insurance obligations of parties - include when parties need to maintain particular insurance coverage

2. Confidentiality: Provisions regarding confidential information - include when sensitive information is shared

3. Compliance with Laws: Specific regulatory compliance obligations - include for regulated industries

4. Data Protection: Provisions regarding personal data handling - include when personal data is processed

5. Third Party Rights: Rights of third parties under the Contracts (Rights of Third Parties) Ordinance - include when third party rights are relevant

6. Step-in Rights: Rights to step in and remedy defaults - include in complex commercial arrangements

7. Intellectual Property: IP-related liability provisions - include when IP rights are involved

What schedules should be included in a Liability Agreement?

1. Schedule 1 - Liability Caps: Detailed breakdown of liability caps for different types of claims or incidents

2. Schedule 2 - Insurance Requirements: Specific details of required insurance policies and coverage levels

3. Schedule 3 - Claims Procedure: Detailed process flow and requirements for making claims

4. Schedule 4 - Contact Details: Contact information for key personnel and notices

5. Schedule 5 - Excluded Losses: Detailed list of excluded losses and damages

6. Appendix A - Incident Report Form: Standard form for reporting incidents that may lead to liability claims

7. Appendix B - Risk Assessment: Assessment of potential risks and corresponding liability allocation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions








































Clauses






































Relevant Industries

Construction

Manufacturing

Technology

Healthcare

Financial Services

Professional Services

Logistics and Transportation

Real Estate

Energy

Maritime

Aviation

Retail and Consumer Services

Education

Entertainment and Events

Relevant Teams

Legal

Risk Management

Compliance

Operations

Finance

Commercial

Procurement

Insurance

Project Management

Business Development

Corporate Affairs

Relevant Roles

Legal Counsel

Risk Manager

Compliance Officer

Contract Manager

Project Manager

Operations Director

Chief Financial Officer

Chief Legal Officer

Insurance Manager

Commercial Director

Business Development Manager

Procurement Manager

General Counsel

Chief Risk Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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