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The Litigation Side of Forensic Accounting Copyrighted 2001 D. Larry Crumbley, CPA, Cr.FA, CFD KPMG ... - page 202 / 275

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© D.L. Crumbley

Hold-Harmless Provisions: Engagement Letters

Limiting Liability: generally valid between parties to the agreement ( but not third parties).

Clause 1: In no event will our firm be liable for incidental or consequential damages, even if we have been advised of the possibility of such damages.

Clause 2: You and your client agree to hold our firm, its partners, and employees harmless from any and all liabilities, costs, and expenses relating to this engagement, and expenses (and those of our legal counsel) incurred by reason of any action taken or committed at your direction and taken by us in good faith; and you agree to indemnify us for any such action taken at your direction.

Limiting Damages: generally valid between parties to the agreement ( but not third parties).

Clause 3: Our aggregate liability to [attorney] or [attorney’s client] whether in contract, tort, or otherwise, will be limited to the amount paid to us by [attorney] or [attorney’s client] for the services under this engagement letter.

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