SpendQueryBeta

FAR and DFARS › DFARS Part 225: Foreign Acquisition › Subpart 225.73

DFARS 225.7305 Limitation of liability.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contracting personnel to advise the contractor when a foreign customer will assume the risk for loss or damage under the applicable limitation of liability clauses. It also directs that the cost of any necessary insurance the contractor obtains to cover loss or damage be considered when setting the FMS contract price.

Applies to: Foreign Military Sales (FMS) contracts and the contractors performing them

Key terms: limitation of liability · foreign customer · risk of loss or damage · FMS contract price · insurance

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

Advise the contractor when the foreign customer will assume the risk for loss or damage under the appropriate limitation of liability clause(s) (see FAR Subpart 46.8). Consider the costs of necessary insurance, if any, obtained by the contractor to cover the risk of loss or damage in establishing the FMS contract price.

Sections that refer to it

← 225.7304 FMS customer involvement. · 225.7306 Offset arrangements. →

Rule changes for DFARS Part 225

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 225.7305 Limitation of liability · SpendQuery