This note considers whether a contract term can exclude all liability for latent defects and limit liability to defect repair or replacement. The clause is based on clause 36.9 from MF/1, the Model Form of conditions for electrical, electronic and mechanical plant from IMechE/IET. The relevant cases are British Fermentation Products v Compair Reavell [1999] 2 All ER (Comm) 389 and in BHP Petroleum v British Steel [2000]2 All ER (Comm) 133. The note was prepared by Sarah fox, 500 Words Ltd. She has reviewed, adapted, advised and trained on the MF/1 form of contract. www.500words.co.uk