Disclaimers: Overview, definition and example
What is a disclaimer?
A disclaimer is a statement in a contract or document that limits a party’s responsibility for certain outcomes, risks, or liabilities. It’s a way to set boundaries on what a party is or isn’t accountable for, making it clear to the other side what they can and can’t expect. Disclaimers are often used in contracts, websites, product manuals, or agreements to reduce potential legal risks.
For example, a software company might include a disclaimer stating that they’re not responsible for data loss caused by the user’s improper setup. It’s not about avoiding responsibility altogether—it’s about being upfront about what isn’t covered.
Why is a disclaimer important?
Disclaimers are important because they protect businesses and individuals from being held liable for situations beyond their control or risks they haven’t agreed to take on. By clearly outlining these limits, a disclaimer helps manage expectations and reduces the chances of disputes. For instance, a service provider might disclaim liability for delays caused by third parties, ensuring they aren’t unfairly blamed for factors outside their control.
For businesses, disclaimers are an essential risk management tool. They not only shield against potential lawsuits but also provide transparency, making sure everyone understands the limits of the agreement.
Understanding a disclaimer through an example
Imagine a fitness app that provides workout suggestions. The app includes a disclaimer stating that it’s not responsible for injuries resulting from exercises performed incorrectly. This means that if a user hurts themselves while following the app’s recommendations, they can’t hold the app’s creators legally liable. The disclaimer doesn’t absolve the app from providing accurate information, but it makes clear that the user is responsible for exercising safely.
Another example is a catering service that includes a disclaimer in their contract, stating they’re not liable for delays caused by traffic or unforeseen events. This ensures the client understands that some situations are beyond the caterer’s control.
An example of a disclaimer clause
Here’s how a disclaimer clause might look in a contract:
“The Company disclaims all liability for damages or losses arising from the Client’s use of the Services, except as expressly provided in this Agreement. The Client acknowledges that certain risks are inherent and accepts full responsibility for such risks.”
Conclusion
A disclaimer is a straightforward way to manage risks and set clear boundaries on responsibilities. By being upfront about what you’re not liable for, a disclaimer protects your interests while ensuring transparency and fairness in the agreement.
Whether you’re drafting or reviewing a contract, understanding disclaimers helps you avoid surprises and clarifies what each party is accountable for. It’s a simple but vital tool for reducing disputes and managing expectations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.