Common use of Liability for Losses Clause in Contracts

Liability for Losses. Each Party shall be liable to the other Party for any Losses incurred by the other Party as a result of the first Party's non-performance of, non-compliance with or breach of its representations and warranties, covenants, undertakings or obligations under this Contract. Each Party's liability for Losses incurred by the other Party due to the first Party's ordinary negligence during any Contract Year shall be limited to an amount of EUR 2 Million (the "Liability Cap"). The Liability Cap shall not apply to a Party's liability (i) for Losses incurred by the other Party due to the first Party's gross negligence or wilful misconduct, (ii) for infringement of third party Intellectual Property Rights under Article 16, (iii) for breaches of representations and warranties under Article 13, (iv) for penalties under Article 14.3 and (v) under Article 14.4.