Caps on Supplier’s liability Clause Samples
A "Caps on Supplier’s liability" clause sets a maximum limit on the amount of financial responsibility a supplier can incur under a contract. Typically, this cap is expressed as a fixed sum or as a multiple of the contract value, and it may exclude certain types of losses, such as those arising from gross negligence or willful misconduct. By establishing a clear upper boundary for potential damages, this clause provides predictability for both parties and protects the supplier from unlimited financial exposure.
Caps on Supplier’s liability. The Supplier's liability arising in relation to the Contract shall be limited as follows: ▪ Recall & property damage: for the indemnity under clause 19.1 concerning ‘recall’ and for damage to tangible property, to the higher of (i) any amount agreed in the Contract as being the cap for recall and property damage or (ii) £10,000,000 Pounds Sterling, in each case for the claim(s) (arising from the same cause/source); and