Liability Cap definition: Copy, customize, and use instantly
Introduction
The term "Liability Cap" refers to a contractual provision that limits the maximum amount of liability a party can incur under the terms of an agreement. It is often used to protect parties from excessive financial exposure due to unforeseen events, claims, or damages arising during the course of the contract.
Below are various examples of how "Liability Cap” can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Liability Cap" in service agreements
This definition ties "Liability Cap" to service agreements, where it limits a service provider’s liability in case of issues arising during the provision of services.
"Liability Cap" means the maximum amount of liability a service provider may incur for damages, losses, or claims resulting from the services provided, which shall not exceed [specified amount] in total.
Definition of "Liability Cap" in sales contracts
This definition connects "Liability Cap" to sales contracts, where it limits the seller's liability for any defects or issues with the goods sold.
"Liability Cap" refers to the maximum amount of damages or losses the seller may be responsible for in relation to the goods sold, which shall not exceed the total purchase price of the goods.
Definition of "Liability Cap" in intellectual property agreements
This definition ties "Liability Cap" to intellectual property agreements, where it restricts liability related to infringement or misuse of intellectual property.
"Liability Cap" means the maximum amount of liability a party may incur for claims related to intellectual property infringement, which shall not exceed [specified amount], regardless of the number of claims.
Definition of "Liability Cap" in lease agreements
This definition connects "Liability Cap" to lease agreements, where it sets a maximum limit on the landlord's or tenant's liability under the lease.
"Liability Cap" refers to the maximum amount of liability either party may incur for any damages or breaches of the lease agreement, which shall not exceed [specified amount].
Definition of "Liability Cap" in construction contracts
This definition links "Liability Cap" to construction contracts, where it limits the contractor’s liability for delays, defects, or other issues related to the construction project.
"Liability Cap" means the maximum amount of liability the contractor shall incur for any damages or losses caused by delays, defects, or breaches of the construction contract, which shall not exceed [specified amount].
Definition of "Liability Cap" in software licensing agreements
This definition ties "Liability Cap" to software licensing agreements, where it limits the licensor’s liability for issues related to software defects or performance.
"Liability Cap" refers to the maximum amount of liability the licensor may incur for software defects or performance issues, which shall not exceed the amount paid by the licensee for the software.
Definition of "Liability Cap" in franchising agreements
This definition connects "Liability Cap" to franchising agreements, where it restricts the franchisor's liability for claims arising from the operation of a franchise.
"Liability Cap" means the maximum liability a franchisor may incur for claims arising from the operation of the franchise, which shall not exceed [specified amount] or the total fees paid by the franchisee.
Definition of "Liability Cap" in employment contracts
This definition applies "Liability Cap" to employment contracts, where it limits the employer's liability in the event of claims by the employee.
"Liability Cap" refers to the maximum amount of liability the employer may incur for claims brought by the employee under the terms of the employment contract, which shall not exceed [specified amount].
Definition of "Liability Cap" in loan agreements
This definition links "Liability Cap" to loan agreements, where it sets a maximum limit on the borrower’s liability to the lender.
"Liability Cap" refers to the maximum liability the borrower may incur to the lender under the loan agreement, which shall not exceed the principal loan amount plus any accrued interest.
Definition of "Liability Cap" in partnership agreements
This definition connects "Liability Cap" to partnership agreements, where it limits the liability of a partner for debts or obligations incurred by the partnership.
"Liability Cap" means the maximum liability a partner may incur for the debts or obligations of the partnership, which shall not exceed the partner’s capital contribution or [specified amount].
Definition of "Liability Cap" in insurance contracts
This definition ties "Liability Cap" to insurance contracts, where it limits the insurer’s liability for claims made under the policy.
"Liability Cap" refers to the maximum amount the insurer may be required to pay under the insurance policy for any claims, which shall not exceed [specified amount].
Definition of "Liability Cap" in merger and acquisition agreements
This definition links "Liability Cap" to merger and acquisition agreements, where it limits the liability of the seller in connection with the transaction.
"Liability Cap" means the maximum amount of liability the seller may incur in relation to the merger or acquisition, which shall not exceed [specified amount] or a percentage of the purchase price.
Definition of "Liability Cap" in non-disclosure agreements
This definition connects "Liability Cap" to non-disclosure agreements (NDAs), where it limits the liability for breaches of confidentiality.
"Liability Cap" refers to the maximum amount of liability a party may incur for breaches of confidentiality under the NDA, which shall not exceed [specified amount].
Definition of "Liability Cap" in agency agreements
This definition ties "Liability Cap" to agency agreements, where it limits the agent’s liability for actions taken on behalf of the principal.
"Liability Cap" means the maximum amount of liability the agent may incur for actions taken in the course of agency, which shall not exceed [specified amount] or the compensation received.
Definition of "Liability Cap" in marketing agreements
This definition connects "Liability Cap" to marketing agreements, where it sets a limit on the liability for marketing-related claims or actions.
"Liability Cap" refers to the maximum liability the marketer may incur for claims related to marketing activities, which shall not exceed [specified amount].
Definition of "Liability Cap" in distribution agreements
This definition ties "Liability Cap" to distribution agreements, where it limits the distributor’s liability for damages related to the distribution of goods.
"Liability Cap" means the maximum liability the distributor may incur for damages or losses arising from the distribution of goods, which shall not exceed [specified amount].
Definition of "Liability Cap" in construction defect claims
This definition applies "Liability Cap" to construction defect claims, where it limits the contractor's liability for defects or damages after project completion.
"Liability Cap" refers to the maximum liability the contractor may incur for any defects or damages found after the completion of the construction project, which shall not exceed [specified amount].
Definition of "Liability Cap" in product liability agreements
This definition connects "Liability Cap" to product liability agreements, where it limits the liability for defective products.
"Liability Cap" means the maximum amount of liability the manufacturer or seller may incur for claims arising from defective products, which shall not exceed [specified amount].
Definition of "Liability Cap" in distribution of software agreements
This definition ties "Liability Cap" to agreements for the distribution of software, limiting the distributor's liability for software-related claims.
"Liability Cap" refers to the maximum liability the distributor may incur for claims arising from the distribution of software, which shall not exceed [specified amount].
Definition of "Liability Cap" in consumer protection contracts
This definition links "Liability Cap" to consumer protection contracts, where it limits the liability for breaches related to consumer rights.
"Liability Cap" refers to the maximum liability a party may incur for violations of consumer protection laws, which shall not exceed [specified amount].
Definition of "Liability Cap" in real estate transactions
This definition connects "Liability Cap" to real estate transactions, where it limits the liability of the seller or buyer for damages related to property defects.
"Liability Cap" means the maximum amount of liability the seller or buyer may incur for any damages or losses related to the property, which shall not exceed [specified amount].
Definition of "Liability Cap" in banking contracts
This definition applies "Liability Cap" to banking contracts, where it limits the bank’s liability for errors, fraud, or other financial issues.
"Liability Cap" refers to the maximum liability the bank may incur for any errors, fraud, or breaches of the banking contract, which shall not exceed [specified amount].
Definition of "Liability Cap" in government contracts
This definition ties "Liability Cap" to government contracts, where it limits the contractor’s liability for claims or breaches related to the agreement with the government.
"Liability Cap" refers to the maximum liability a contractor may incur under a government contract for any claims, breaches, or damages, which shall not exceed [specified amount].
Definition of "Liability Cap" in international trade agreements
This definition links "Liability Cap" to international trade agreements, where it limits the liability of one party in cross-border transactions.
"Liability Cap" means the maximum liability a party may incur under an international trade agreement, which shall not exceed [specified amount] or the value of the goods involved in the transaction.
Definition of "Liability Cap" in telecommunications contracts
This definition connects "Liability Cap" to telecommunications contracts, where it limits the provider's liability for service interruptions or performance failures.
"Liability Cap" refers to the maximum liability a telecommunications provider may incur for service interruptions, failures, or breaches of the telecommunications contract, which shall not exceed [specified amount].
Definition of "Liability Cap" in technology service agreements
This definition applies "Liability Cap" to technology service agreements, where it sets a limit on the provider’s liability for technology-related services.
"Liability Cap" refers to the maximum liability a technology service provider may incur for issues such as system failures, service downtime, or breaches, which shall not exceed [specified amount].
Definition of "Liability Cap" in hospitality agreements
This definition ties "Liability Cap" to hospitality agreements, where it limits the liability of a hotel or service provider for damages to guests.
"Liability Cap" means the maximum liability a hotel or service provider may incur for damages, injuries, or losses sustained by guests, which shall not exceed [specified amount].
Definition of "Liability Cap" in transportation agreements
This definition connects "Liability Cap" to transportation agreements, where it limits the liability of the transport provider for damages during shipment.
"Liability Cap" refers to the maximum liability a transportation provider may incur for damages during shipment, which shall not exceed [specified amount].
Definition of "Liability Cap" in advertising agreements
This definition applies "Liability Cap" to advertising agreements, where it limits the advertiser's liability for issues arising from ad campaigns.
"Liability Cap" means the maximum liability the advertiser may incur for damages related to an advertising campaign, which shall not exceed [specified amount].
Definition of "Liability Cap" in charity agreements
This definition links "Liability Cap" to charity agreements, where it limits the charity's liability for damages or claims resulting from events or fundraising activities.
"Liability Cap" refers to the maximum liability a charity may incur for damages or claims arising from events or fundraising activities, which shall not exceed [specified amount].
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.