Limitation of Liability Clause
/ˌlɪmɪˈteɪʃən əv laɪəˈbɪləti klɔːz/
Definitions
- (n.) A contractual provision that limits the amount or type of damages a party can recover in case of breach or other claims.
The limitation of liability clause in the contract capped damages at $100,000.
Forms
- limitation of liability clause
- limitation of liability clauses
Related terms
See also
Commentary
Carefully drafted limitation of liability clauses can allocate risk between parties and avoid unintended extensive liability; clarity and specificity are crucial to enforcement.
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.