Limitation of Liability
/ˌlɪmɪˈteɪʃən əv laɪəˈbɪləti/
Definitions
- (n.) A contractual or statutory provision that restricts the amount or types of damages one party can recover from another.
The limitation of liability clause capped the damages at $100,000.
- (n.) A legal principle reducing or eliminating a party's liability under certain conditions, often to encourage risk-taking or fairness.
The court upheld the limitation of liability to protect the manufacturer from excessive claims.
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Commentary
Limitation of liability clauses must be clear and conspicuous to be enforceable; ambiguous terms are often construed against the drafter.
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.