Usually a clause in the purchasing agreement refusing to accept "contingent
liabilities" gets around damages (liabilities) your customer may incur
throught the use of, un-availbility, etc. of the product you supply. I
worked at Chase Bank once and their contract with a fishing company did NOT
decline contingent liabilities. Through a computer snafu the payroll for a
docking fishing boat was not there in time. The crew refused to unload the
fish (which spoiled) and the bank was liable for the value of the catch in
the ships holds. Needless to say there was a big bruh-ha-ha and we were all
"educated" on this issue.
Ray Klein
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