Liability Limitation
/ˌlaɪəˈbɪləti ˌlɪmɪˈteɪʃən/
Definitions
- (n.) A contractual or statutory provision that restricts the amount or type of damages a party can recover.
The liability limitation clause capped the damages at $100,000 regardless of the actual loss.
- (n.) A legal mechanism to reduce or eliminate a party's exposure to certain liabilities, often seen in corporate or insurance contexts.
The company used liability limitation strategies to shield its assets from potential lawsuits.
Related terms
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Commentary
Liability limitation provisions must be carefully drafted to ensure enforceability and clarity about scope, amount, and exceptions.
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.