In the absence of a contract that defines or limits the scope of liability,
a manufacturer can be liable not only for the direct losses, such as the
buyer's replacement costs, but also for consequential damages - those
damages that were reasonably foreseeable to the parties at the time they
entered into the contract. The scope of consequential damages can be
enormous - if you supply a defective part that is incorporated into a piece
of equipment that is resold,  the damages can be as much as the value of the
company if it is destroyed. Therefore, it is very important to have a strong
sales contract that limits your liability to the purchase price of the
product that you are selling, and to define and disclaim what warranties you
are and are not making with respect to that product.
-----Original Message-----
From: Tri-C Dave Roesler <[log in to unmask]>
To: [log in to unmask] <[log in to unmask]>