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Explain the meaning of capping liability and discuss the arguments against capping liability to the profession.?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2023/05/11
Hussein Mustafa
by Hussein Mustafa , محاسب مالي و إداري , الشهد للاستيراد و التصدير

However, there are arguments against capping liability. Some argue that it can create a moral hazard, where professionals are less likely to take necessary precautions or provide adequate services if they know they are protected from significant financial consequences. Additionally, capping liability can make it more difficult for injured parties to receive fair compensation for their losses.

 

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