Liability Liability Limitations Clause Samples

The "Liability; Liability Limitations" clause defines the extent to which each party is responsible for damages or losses arising from the agreement. Typically, this clause sets maximum caps on monetary liability, excludes certain types of damages like indirect or consequential losses, and may specify exceptions for issues such as gross negligence or willful misconduct. Its core function is to allocate and limit financial risk between the parties, providing predictability and protecting both sides from potentially excessive or unforeseen claims.