This form provides boilerplate contract clauses that limit the remedies available to the parties both under and outside the terms of the contract agreement. Several different language options representing various levels of restriction are included to suit individual needs and circumstances.
California Limitation of Remedies and Damages Provisions
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FAQ
Here are the statutes of limitations for some common types of legal disputes: Personal injury: Two years from the injury. ... Breach of a written contract: Four years from the date the contract was broken. Breach of an oral contract: Two years from the date the contract was broken.
Define the obligations each party is under in the contract because clearly scoped out obligations limit liability. If there are pre-conditions to a contract, or the other party needs to meet obligations before liability kicks in, then this should be clearly stated.
For example, a clause in a purchase agreement for a computer limiting damages to $1.00 would effectively deprive the buyer of any adequate remedy.
Contractual limitations on damages are agreements whereby the parties limit the availability of damages that would otherwise be available under statutory law.
A party can recover only that amount of damage in law which can be proved with reasonable certainty. Especially troublesome in this regard are lost profits and loss of goodwill.
A limitation of damages clause is a contractual agreement where parties either exclude or limit the availability of damages that statutory law otherwise entitles them to.
The parties to a contract may specify in the contract itself the amount of damages to be paid in the event of a breach; these contractually defined damages are known as "liquidated damages." See generally Restatement (Second) of Contracts § 356.
A limitation of liability clause, if found to be enforceable, can ?cap? the number of potential damages incurred. The liability cap may be applied to all claims that arise during the term of the agreement, or it might be restricted to specific claims.