This office lease clause is a standard condition of limitation language dealing with issues of tenant defaults in fulfilling any of the covenants of the lease.
California Condition of Limitation Clause
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Multi-State
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US-OL14014
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How to fill out Condition Of Limitation Clause?
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FAQ
EXCEPT IN THE CASE OF FRAUD, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR LOSS OF PROFITS, OR ANY SPECIAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES, HOWEVER CAUSED, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
California courts recognize the validity of arm's-length agreements limiting liability, including waivers of consequential damages. Provisions in construction contracts that purport to limit liability are valid and enforceable where they are the result of negotiation and agreement between the parties. Ca. Civ.
(2) Consequential damages resulting from the seller's breach include (a) Any loss resulting from general or particular requirements and needs of which the seller at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and (b) Injury to person or property ...
EXCULPATORY CLAUSE IN CONTRACTS An exculpatory clause is language in an agreement which relieves one or both parties from liability under certain conditions. A common example is a parking lot ticket stub that states that the parking lot owner is not responsible for theft or damage to the vehicle.
A seller may limit or exclude consequential damages unless the limitation or exclusion is unconscionable (Cal. Com. Code???2719(3)).
One of the most common types of clause is one that attempts to limit liability for ?indirect or consequential? loss or damage. The reason for wishing to exclude liability for ?indirect or consequential? losses is that these losses may be unpredictably large, or open-ended, representing an ?unquantifiable risk?.
Incidental damages to an aggrieved seller include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the buyers' breach, in connection with return or resale of the goods or otherwise resulting from the breach.
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.
