US Legal Forms
Legal Resources
Questions & Answers
Small Business
How Do I Limit My Liabilty When Purchasing an Existing Business?

How Do I Limit My Liabilty When Purchasing an Existing Business?

Full question:

I am a small business and need some guidance on purchasing one of our competitors. I need some help in getting some type of release of liability contract. I am purchasing only there phone number and clients.

Category: Small Business
Date: 04/07/2025
State: California

Answer:

A hold harmless agreement is one in which one person agrees to assume the liability and risk that may arise from the obligation, and protects and indemnifies the other party against having to bear any loss. An indemnification or hold harmless agreement allows the other party to the contract to be reimbursed against loss or damage.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is the purpose of a liability waiver?

The purpose of a liability waiver is to protect one party from legal claims or damages that may arise from certain activities or transactions. By signing a waiver, the individual acknowledges the risks involved and agrees not to hold the other party responsible for any injuries or losses. This is especially useful in business settings where clients may assume risks associated with services or products.

Can I write my own liability waiver?

Yes, you can write your own liability waiver, but it is important to ensure that it is clear, specific, and legally enforceable. The waiver should outline the risks involved and include language that indicates the signer understands and accepts these risks. However, consulting with a legal professional is advisable to ensure it meets all legal requirements.

Do waivers protect you from being sued?

Waivers can provide a level of protection from lawsuits, as they indicate that the signer has agreed to assume certain risks. However, they may not be foolproof. Courts may not enforce a waiver if it is deemed overly broad, unclear, or if the negligence of the party offering the waiver is involved. Legal advice is recommended to draft a strong waiver.

What is a liability waiver for a small business?

A liability waiver for a small business is a legal document that clients or customers sign to acknowledge the risks associated with the business's services or products. It helps protect the business from legal claims if a client experiences an injury or loss. This is particularly important for businesses that involve physical activities or services that carry inherent risks.

How to write a liability release form?

To write a liability release form, start by clearly identifying the parties involved. Include a detailed description of the activities or services covered by the waiver. State the risks involved and that the signer agrees to release the other party from liability. Make sure the language is straightforward and easy to understand. Finally, have the signer acknowledge their understanding and acceptance of the terms.