Master Service Agreement – Limit of Liability

[Anonymous]

Good morning all,

We are currently working on a Master Service Agreement with Wartsila for service and parts after our warranty period expires in January.  One section of the agreement that we are hung up on relates to “Limits of Liability”.  In short and laymen’s terms they want to limit their financial exposure to the amount of the services or parts being purchased at the time.  An example being they have a $20,000 service order and through their negligence they damage an engine, their exposure is only $20,000, while the actual cost to repair could be significantly higher.

Does anyone have service contracts for your large equipment that has language related to limits of liability in them?

We are curious how others deal with this language that seems to weigh very heavily in the manufacturer’s favor.  We would greatly appreciate any information you could provide.

Thanks,

Curt Schmidt

Generation & Transmission Superintendent

Stillwater Electric Utility

[Author]

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