Limitation of Liability. Whether it`s limiting liability to your company`s fees, a multiple of fees, the insurance required under the agreement, or any other amount acceptable to both parties, including a limitation of liability, helps define the overall risk to your business and your customers. Public bodies such as federal customers, Länder, municipalities, cities and universities cannot introduce a limitation of liability in their contracts. In these cases, how will your company reduce the risk of potentially unlimited liability? Most business transactions, including the performance of a contract with another company, expose a company to risk. With respect to contracts in particular, there is always a risk that one part of the contract will not function as agreed and cause a lot of damage or loss to the other party. While there is no possibility of completely eliminating the risk associated with awarding contracts, there are certainly a number of steps that companies can take to reduce the likelihood and impact of an infringement or other accident. Here are the best tips for successful contract risk management: the emergence of risks that the other party faces can be extremely difficult to manage and the consequences can be predictable in the long run. However, if the other party does not manage the risks you have assigned, the responsibility for managing the risks may lie with the contract provider, since the occurrence of the risk usually concerns both parties. A buyer`s failure to obtain and implement a guide from either group or to comply with the contract management standards and practices presented herein exposes the university and its academic or administrative unit to potentially significant financial losses. Although Harvard has its own insurance programs, there are certain types and parts of losses that Harvard cannot or cannot insure against. For commitments arising from an offer agreement that have been increased less strictly by accreditation than the conditions recommended above, the competent TUB will bear the increased financial consequences of the university for the part of a loss that could have been recovered by the supplier if the standards and practices in force had been respected. I did not tell you that there was no other way to do it. improved understanding of how it works and the detection of its risks….