Limitation of Liability
Circumstances may arise where, because of a default on IBM’s part or other liability, you are entitled
to recover damages from IBM. In each such instance, regardless of the basis on which you are entitled
to claim damages from IBM (including fundamental breach, negligence, misrepresentation, or other
contract or tort claim), IBM is liable for no more than
1. damages for bodily injury (including death) and damage to real property and tangible personal
property; and
2. the amount of any other actual direct damages, up to the greater of U.S. $100,000 (or equivalent in
local currency) or the charges (if recurring, 12 months’ charges apply) for the Machine that is the
subject of the claim.
This limit also applies to IBM’s suppliers and your reseller. It is the maximum for which IBM, its
suppliers, and your reseller are collectively responsible.
UNDER NO CIRCUMSTANCES IS IBM LIABLE FOR ANY OF THE FOLLOWING:
1) THIRD-PARTY CLAIMS AGAINST YOU FOR DAMAGES (OTHER THAN THOSE UNDER THE FIRST
ITEM LISTED ABOVE); 2) LOSS OF, OR DAMAGE TO, YOUR RECORDS OR DATA; OR 3) SPECIAL,
INCIDENTAL, OR INDIRECT DAMAGES OR FOR ANY ECONOMIC CONSEQUENTIAL DAMAGES
(INCLUDING LOST PROFITS OR SAVINGS), EVEN IF IBM, ITS SUPPLIERS OR YOUR RESELLER IS
INFORMED OF THEIR POSSIBILITY. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR
LIMITATION OF INCIDENTAL OR CONSE-QUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR
EXCLUSION MAY NOT APPLY TO YOU.
Part 2 - Country-unique Terms
ASIA PACIFIC
AUSTRALIA: The IBM Warranty for Machines: The following paragraph is added to this
Section:
The warranties specified in this Section are in addition to any rights you may have under the Trade
Practices Act 1974 or other legislation and are only limited to the extent permitted by the applicable
legislation.
Extent of Warranty: The following replaces the first and second sentences of this Section:
The warranty does not cover the repair or exchange of a Machine resulting from misuse, accident,
mod-ification, unsuitable physical or operating environment, operation in other than the Specified
Operating Environment, improper maintenance by you, or failure caused by a product for which IBM
is not responsible.
Limitation of Liability: The following is added to this Section:
Where IBM is in breach of a condition or warranty implied by the Trade Practices Act 1974, IBM’s
liability is limited to the repair or replacement of the goods or the supply of equivalent goods. Where
that condition or warranty relates to right to sell, quiet possession or clear title, or the goods are of a
kind ordinarily acquired for personal, domestic or household use or consumption, then none of the
limi-tations in this paragraph apply.
PEOPLE’S REPUBLIC OF CHINA: Governing Law: The following is added to this Statement:
The laws of the State of New York govern this Statement.
INDIA: Limitation of Liability: The following replaces items 1 and 2 of this Section:
1. liability for bodily injury (including death) or damage to real property and tangible personal
property will be limited to that caused by IBM’s negligence;
2. as to any other actual damage arising in any situation involving nonperformance by IBM pursuant
to, or in any way related to the subject of this Statement of Warranty, IBM’s liability will be limited
to the charge paid by you for the individual Machine that is the subject of the claim.
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