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Waiver"], ["punitive-damages", "Punitive Damages", "Punitive Damages"], ["exclusion-of-consequential-damages", "Exclusion of Consequential Damages", "Exclusion of <strong>Consequential Damages</strong>"], ["limitation-on-consequential-damages", "Limitation on Consequential Damages", "Limitation on <strong>Consequential Damages</strong>"]], "related_snippets": [], "updated": "2026-04-24T05:04:27+00:00", "also_ask": ["What are the most effective carve-outs to negotiate in a consequential damages waiver?", "Which drafting elements are essential to ensure the clause is enforceable in court?", "How do courts in key jurisdictions interpret and limit consequential damages exclusions?", "What are the most common pitfalls or ambiguities that render these clauses ineffective?", "How does the definition of 'consequential damages' differ from direct damages in this context?"], "drafting_tip": "Specify excluded damages, clarify definitions, and align with governing law to prevent ambiguity, limit liability, and ensure enforceability.", "explanation": "A Consequential Damages clause limits or excludes a party\u2019s liability for damages that do not flow directly from a breach but arise as an indirect result, such as lost profits or business interruptions. 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