Liability of the Custodian for Actions of Others Clause Samples

The "Liability of the Custodian for Actions of Others" clause defines the extent to which a custodian is responsible for the acts or omissions of third parties, such as agents, sub-custodians, or contractors engaged in connection with their duties. Typically, this clause clarifies whether the custodian is liable for losses or damages caused by these third parties, and may specify conditions under which liability is limited or excluded, such as when the custodian has exercised due care in selecting and monitoring them. Its core function is to allocate risk between the parties by setting clear boundaries on the custodian's responsibility for third-party actions, thereby reducing uncertainty and potential disputes.