Legal Impact of Contractual Clauses: Managing Liability, Damages and Risks

What You'll Learn

• Understand key legal and contractual terms in engineering/manufacturing project contracts.
• Implement and apply the contractual terms in relation to timeline, quality control and SOP.
• Differentiate between types of losses (direct, indirect, consequential) and their enforceability.
• Manage risk, liability, indemnity, warranties, and penalties in contracts.
• Understand claims, EOT (Extension of Time), LAD (Liquidated Damages), and dispute mechanisms.

Course Content Overview

• Identifying the parties involved (direct and indirect)
• Documents which constitute the formation of contract
• Payment terms and related issues (currency, interest rate, etc)

• Termination clauses and their implications (Difference between mutual termination, early termination and termination by breach)
• Remedies available for breach/default by parties (under the law and contract)
• Direct vs consequential losses – loss of profit, opportunity, or revenue
• Liability for negligence and/or indirect causation
• Protection under existing contracts/documents
• What and how to explain to customers?
• Exclusion or limitation of liability

• Managing extension of time (EOT) and mitigation clauses by executing the necessary paperwork
• What constitutes Liquidated Ascertained Damages (LAD) and its enforceability
• How change of circumstances affects EOT and LAD

Requirements

Physical Appearance

Description

In engineering and commercial projects, contracts are vital for effective execution and risk management. Misunderstanding contractual terms can lead to costly disputes and project delays. This training provides practical insight into key clauses such as LAD, limitation of liability, consequential losses, performance guarantees, and insurance coverage. Participants will learn how these clauses allocate risk and affect remedies for breach or delay. The course includes real Malaysian case studies and practical drafting examples. It aims to strengthen participants’ ability to identify, manage, and mitigate contractual risks. By the end, participants will be equipped to protect their organisation’s legal and commercial interests.

Who this course is for

Managers, Executives, Senior Managers / Head of Department - In the Sales, Project and Services department

You may download the course detail, trainer profile and leaflet by click download button below

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