Cap Expiry Clause Samples

The Cap Expiry clause defines the date or event upon which a contractual cap—such as a limit on liability, costs, or claims—ceases to apply. In practice, this means that after the specified expiry date or condition is met, the protections or limitations provided by the cap are no longer enforceable, and parties may be exposed to greater liability or obligations. For example, a contract might limit damages to a certain amount for the first two years, after which the cap expires and full liability resumes. This clause is essential for managing risk over time, ensuring that limitations are not indefinite and providing clarity on when parties' responsibilities may change.