I wish that there were well defined, common sense limits on indemnification and liability for misrepresentations.

Compare both to bona fide insurance markets. If I buy insurance, there is a defined maximum payment. And if I defraud the insurer, I get in trouble. And the insurer knows that they’re getting into, and they understand the risks and get compensated appropriately.

When some random consumer contract states that the consumer indemnifies the service provider, the consumer usually has no idea what this means and probably literally never sees the contract text. There is rarely a limit specified and, if there is, it’s probably basically a joke. And the benefit to the consumer rarely has anything to do with the risk (in fact, often the consumer pays and supposedly indemnifies the party they’re paying).

And then we get to representations. In a real B2B contract negotiated by lawyers both sides, the representations are generally relevant, everyone does them, and the replying party is expected to do due diligence. But in contracts like this Meta thing, to the extent that there is a representation that the publisher can issue a license:

a) That representation has nothing to do with the actual reason the publisher is entering into a relationship with Meta (the customer probably just wants to run ads or use business messaging)

b) The customer is extremely unlikely to have had a lawyer review the contract and Meta would not allow any good faith negotiation anyway.

c) Meta is not doing due diligence.

I feel like some combination of a, b and c should invalidate Meta’s right to rely on the representations and, in an ideal world, would even serve as evidence of bad faith on Meta’s part and serve to shift additional liability to Meta.