Document background
The Limited Liability Agreement serves as a critical risk management tool for businesses operating under Swiss jurisdiction. It is particularly valuable when parties need to clearly define and limit their potential liability exposure in commercial relationships, while ensuring compliance with Swiss legal requirements. This document type is commonly used in service agreements, manufacturing contracts, technology implementations, and professional service engagements where parties seek to allocate risks appropriately. The agreement must carefully balance the parties' desire to limit liability with mandatory Swiss law provisions, particularly those found in the Swiss Code of Obligations regarding the unenforceability of liability limitations in cases of gross negligence or willful misconduct. It typically includes specific monetary caps on liability, exclusions for certain types of damages, and clear indemnification provisions.
