Page 233 - RISK Management IC 86

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(b) Discuss the (i) legal aid and (ii) practical
issues which arise in transfer of risks by
contract conditions.

Ans.a) The transfer of the financial consequences of injury,
loss or damage from one party to a contract to the other
party by means of clauses in the contract is a common
practice in relation to liability arising out of - (i)the sale
or supply of goods or services, where liabilities may
arise out of injury, loss or damage caused by goods,
negligent professional advice, infringement of patents,
copyrights etc. (ii)the sale, rental and leasing of property.
(iii) contractors and persons entering working on
premises where liabilities may arise out of the damage
to the employer's premises or injury to the employees,
injury to third parties or damage to their property,
pollution, etc.

Examples of such clauses can be found displayed outside
car parks, in hotels, and conditions of sale set out on
the back of invoices. The clauses are known as
exclusions, and are harmless indemnity clauses.

Ans.b) Refer Q5 May, 2055

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