What is contractual liability limitation?

Contractual - Based on terms of a contract Contract - an agreement (usually signed) between one or more parties Liablity (in the case) - how much a party is responsible for due to damage or non-performance Limitation - limit of something Two parties enter into a contract for something. Within that contract there is specified a limit to the liablity of either party should the contract not be fullfilled or damage is caused by failure of either party. Contractual Liability Limitation is the total amount that either party would be responsible for based on the agree upon contract In other words, there is a limit a company/person is only liable (has to pay) for when something goes wrong with a product or service.

That limit is based on the contract Hope this helps.

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