why a contract protects
Four Methods:Protecting Yourself from Liability for Business DebtsProtecting Assets When Co-signing a LoanLimiting Your Liability When Signing General ContractsLimiting Liability on Real Estate ContractsCommunity Q&A. Itâs impossible to completely protect yourself from liability when you sign a contract. After all, the purpose of a contract is to bind you to its terms. Accordingly, if you donât perform your obligations, the other party to the contract can sue you. However, it is certainly possible to reduce your liability.