Understanding Contractual Limitations on Liability
The overwhelming majority of contracts and purchase orders are fulfilled without a major issue, but contractual limitation on liability can have significant impact for a business, warns Glen W. Price of Best Best & Krieger.
He discusses the two types of limitation of liability.
“The first limitation is on the type of damages you can claim if there is a breach of contract. The most common damages to be waived or limited in contracts are indirect or consequential damages and lost profits,” Price writes.
The second type of limitation on liability he discusses is a dollar limitation or cap.
