Contracts
Limitation of liability
A contract clause capping how much one side can be made to pay the other if things go wrong, often to the value of the contract. Also called a liability cap.
A plain-English explanation of how this usually works, not legal advice. Rules differ between countries and change over time, so check your own situation. Disclaimer.
You'll hear it as
Liability is capped at twelve months' fees.
Why it matters to you.
It's often the most negotiated clause in a technology contract, because it decides who pays when a system fails.
Also called Liability cap.
Related terms.
Videos.
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