Proportionate Liability Clauses

Published: 31 May 2017 Average Rating: unrated Print

Author: Kinglsey Martin, President and CEO of KM Standards

Proportionate Liability (or net contribution) clauses allocate liability for losses in proportion to each party's contributory fault in causing the loss. By contrast, the common law principle of Contributory Negligence precluded recovery by a claimant who was in part responsible for the loss. Alternatively, Joint and Several Liability allows a claimant to seek full recovery for any contractual responsibility. However, the claimant may not claim damages for more than total loss.

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