Liability for Direct Damage Clause Samples
The 'Liability for Direct Damage' clause defines the extent to which a party is responsible for compensating the other party for direct losses or damages resulting from a breach of contract or other specified events. Typically, this clause limits liability to damages that are a direct and foreseeable result of the breach, excluding indirect or consequential losses such as lost profits or reputational harm. By clearly outlining what types of damages are covered and capping the amount recoverable, this clause helps manage risk and provides predictability for both parties in the event of a dispute.
Liability for Direct Damage. Subject to the terms of this Contract*:
(a) a Party* who
(i) is negligent; or
(ii) commits a Default* under this Contract*, is liable to the other Party* for, and must indemnify the other Party* against, any Direct Damage* caused by, consequent upon or arising out of the negligence or Default*; and
(b) the Indemnifier* must indemnify Western Power* in respect of the liabilities of the User* under this Contract*.
Liability for Direct Damage. Subject to the terms of this Agreement a Party who:
(a) is negligent; or
(b) commits a Default under this Agreement, is liable to the other Party for, and must indemnify the other Party against, any Direct Damage caused by, consequent upon or arising out of the negligence or Default.