The Clause That Limits How Much You Can Ever Recover

Limitation-of-liability clauses can cap damages at the fees paid, or zero. Know the cap before you sign.

A limitation-of-liability clause sets the ceiling on what you can recover when the other side causes real damage. A common ceiling is the fees you already paid them.

Two details decide whether the cap is fair. The first is whether it applies to both sides. The second is what it carves out: fraud, gross negligence, and breach of confidentiality usually should not be capped.

The pattern to refuse is a one-sided cap sitting next to an uncapped indemnity. Read together, they leave your exposure unlimited while theirs stays fixed.