Claus Hastrup Knudsen

In commercial contracts, it is common for parties to seek to minimize their risks through limitations of liability. Such limitation clauses are usually a contractual clause intended to restrict one party's liability towards the other in case of breach or damages arising from the contract’s performance. Such limitations may include a fixed cap on compensation, the exclusion of certain types of loss, or specific exceptions for liability in particular situations.

Many contracts often include an arbitration clause. Despite being one of the most important provisions in a contract, the arbitration clause is often placed near the end of the contract and often the substance and wording of the provision is not given much attention. However, an inadequate or unsuitable wording of an arbitration clause is a pitfall than can lead to unwanted and unnecessary consequences for the parties.

Is there a growing trend in the Nordic countries where courts are increasingly emphasising reasonableness and loyalty as guiding principles in commercial relations? If so, could this shift be occurring at the expense of the parties' ability to cater for a high level of predictability and certainty in their commercial dealings?