Limitation of Liability
A limitation of liability is a contractual clause that caps or limits categories of damages a party may recover, often excluding consequential damages or capping total exposure. In transactional risk management, it is used alongside indemnities and escrow holdbacks to define exposure bounds.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Contract negotiation; dispute outcomes
- Property types
- All contracts
Risk and Liability Terminology
- Closing Protection Letter (CPL)
- Closing Wire Fraud / Business Email Compromise (BEC)
- Deed Fraud
- Directors and Officers (D&O) Insurance
- Errors & Omissions (E&O) Insurance
- Force Majeure
- Indemnification
- Liquidated Damages
- Notice of Recorded Document (NRD) Monitoring
- Recording Gap Risk
General information, not legal, tax or financial advice.