Damage Cap
/ˈdæmɪdʒ kæp/
Definitions
- (n.) A contractual or statutory provision that limits the amount of monetary damages one party can recover from another.
The contract included a damage cap of $100,000 to limit liability.
Forms
- damage caps
Related terms
See also
Commentary
Damage caps are often negotiated to balance risk and encourage settlement; precise drafting is critical to avoid ambiguity about scope and applicability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.