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Limitation of Liability Clause

Caps the amount and types of damages a party can be liable for, and excludes certain categories of loss.

Ce que c'est

A limitation of liability clause caps total liability (often at fees paid) and excludes categories such as indirect or consequential loss and lost profits. It is the primary tool for keeping contractual risk proportionate to deal value.

Pourquoi c'est important

Uncapped liability can vastly exceed contract revenue and make a deal uninsurable. A balanced cap allocates risk predictably; courts may, however, set aside a cap that is unreasonably onerous or invoked in case of intent or gross negligence.

Comment l'appliquer

  • Set an aggregate cap, commonly tied to fees paid over a defined period.
  • Exclude indirect and consequential loss, defining those terms clearly.
  • Carve out liabilities that cannot or should not be capped (e.g. intent, IP, data).
  • Make the cap mutual where bargaining power is balanced.

Exemple de formulation

Each party's total aggregate liability under this Agreement shall not exceed the fees paid in the twelve months preceding the event giving rise to the claim. Neither party is liable for indirect or consequential loss.

Conseils de négociation

  • Recipients of the cap should carve out IP, confidentiality, data and personal-injury claims.
  • Tie the cap to a multiple of annual fees if a single year is too low.

Pièges courants

  • Attempting to exclude liability for intent or gross negligence, which is usually unenforceable.
  • Leaving "consequential loss" undefined, inviting argument over what is excluded.

Références juridiques

Sauf mention contraire, les références renvoient au droit néerlandais (Burgerlijk Wetboek, le Code civil néerlandais) ; les instruments de l'UE tels que le RGPD s'appliquent dans toute l'UE. Il s'agit d'informations générales, pas de conseils juridiques. D'autres juridictions traitent ces concepts différemment. Vérifiez le texte en vigueur et votre situation avec un avocat qualifié.

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