Does the restriction of liability for Engel & Volkers apply to losses that did not directly affect the delivered items?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) Insofar as nothing else has been determined below, any claims by the Purchaser, which are more extensive than those provided for in the above-mentioned sections, shall be excluded – regardless of the legal argument. We shall therefore not be liable for losses, which did not affect the items being delivered themselves and in particular we shall not be liable for any lost profits or other economic losses of the Purchaser. This restriction of liability shall not apply, insofar as the cause of loss is the result of gross negligence. It shall moreover not apply if the Purchaser can put forward a claim for damages owing to non-performance as a result of the failure of a warranted quality. Lastly, it shall not apply if we culpably infringe an important contractual obligation. In any event, our liability shall be restricted to the foreseeable loss.
- (2) Insofar as our liability to damages is excluded or restricted in accordance with the above-mentioned paragraph 1, this shall also apply to all claims as a result of fault in the event of conclusion of a contract, infringement of secondary obligations, claims from manufacturer's liability and other subject-matters of a claim. This provision shall not apply to non-modifiable statutory claims. Insofar as our liability is excluded or restricted, this shall also apply to the personal liability of our employees, staff, representatives and advisors.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the franchisor's liability does not extend to losses that did not directly affect the delivered items. Engel & Volkers will not be liable for any lost profits or other economic losses of the Purchaser.
However, this restriction of liability does not apply if the cause of the loss is a result of gross negligence. It also does not apply if the Purchaser can make a claim for damages due to non-performance as a result of the failure of a warranted quality. Finally, it does not apply if Engel & Volkers culpably infringes an important contractual obligation.
In any event, Engel & Volkers' liability shall be restricted to the foreseeable loss. This exclusion or restriction of liability also applies to all claims as a result of fault in the event of conclusion of a contract, infringement of secondary obligations, claims from manufacturer's liability and other subject-matters of a claim. This provision does not apply to non-modifiable statutory claims. If Engel & Volkers' liability is excluded or restricted, this also applies to the personal liability of their employees, staff, representatives and advisors.