limitation of damages
limitation of damages, defined:
an agreement provision that defines a maximum on the dollar amount for damages in the event of a breach of contract. In other words, by using a limitation of damages provision, parties agree to a ceiling on damages no matter how badly things may go. Compare limitation of damages to liquidated damages, which sets a fixed dollar amount for breach of contract instead of a maximum figure.
limitation of damages, as it might be used:
The seller insisted on a limitation of damages clause in the contract to reduce her risk.
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Clear-Point Law Dictionary
