Can a typed up “Terms Of Service” diminish all liabilities?

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Can a typed up “Terms Of Service” diminish all liabilities?

My friend and I started our own computer repair business and want to make TOS or whichever the proper name would be for protecting our services rendered. Theoretically, if I typed up my own that covered every possible loop hole, would we still be liable for any of the aforementioned TOS if we have each customer sign a copy of it before touching their computer?

Asked on August 26, 2010 under Business Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You can certainly reduce you liability a great deal, but you cannot eliminate it entirely. In particular:

* You'll still be liable for breach of contract or breach of warranty (you can't insulate yourself fully form this), though you can limit your liability to repair or replacement of the computer and any software

* You'll still be liable for gross negligence (beyond ordinary carelessness) or intentional acts

You should also, to protect yourselves:

1) Set up as an LLC or a corporation, so you're not personally responsble for company debts or liability, other than any you voluntarily assume or guarantee (and certain limited tax obligations); it's always a good idea to do business under one of these structures

2) Get adequate insurance


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