1 Introduction

1.1 Definition

“Knock-for-knock” (hereinafter K4K) clauses operate in various forms. In its most basic form, the clause provides that both parties will cover their own losses, i.e., the “knocks”, that are suffered by their respective property or personnel. As such, neither party can sue the other for the loss suffered. This arrangement minimises the costs that such “knocks” would otherwise incur, by saving the parties the valuable time and money that would typically be spent litigating fault-contingent liability.