This clause is also called a non-detention clause. The exact nature and wording of an agreement may vary from contract to contract and some types of agreements are present in the British oil and rail industry, but an example of a limited form of the detention-damage agreement may be similar to this; A mutual compensation scheme provides for each party to commit to taking responsibility for the harm and loss of its own staff and property and its own «consecutive damages» and to compensating the other. This must be effective even if the accident and the resulting damage is caused by negligence. The non-detention clause is not an absolute protection against actions or liability. A common misunderstanding is that all «profits» are indirect losses. It`s not true. The loss of profits can be either direct or indirect, depending on the facts. It is clear from the contract ownership clause that we have recently reviewed: the restraining ban regime provides that neither party is liable to the other, even if the damage is due to the negligence of one party. However, in some cases, we see that the clause is amended to find that this is not the case in cases of «serious» negligence. Therefore, if one of the parties is found to be gross negligence, they are not considered harmless. This may be acceptable if the contract was under Norwegian or U.S. law. The [principal contractor] (in addition and without prejudice, any other rights or remedies that the other party may have, whether under the law, common law or others) to compensate and compensate the other and to compensate others without prejudice to and against all acts, rights, claims, commitments, damages, costs, losses or expenses (including , but not limited to consequential damages, loss of reputation and all interest, penalties, legal fees and other professional expenses and expenses resulting from a violation or non-compliance by [the subcontractor] of one of the provisions of this agreement.
If you have an agreement with a subcontractor or another party that extends your liability by taking risks that you would not otherwise be liable for, you should inform your insurance company so that it can take this aspect of coverage into account. This increases your premium and may, in certain circumstances, affect the availability of coverage. In the construction industry, three basic types of maintenance safety agreements are used: the broad form, the intermediate form and the limited form. Another point we see is the definition of consecutive or indirect losses in the mutual non-detention clause. It is customary for these losses to be contractually excluded. However, the distinction between indirect and direct loss can be complicated. The famous Hadley v. Baxendale case  found that the direct losses were obviously due to the offence and were therefore predictable and refundable.