Legal Term
Limitation of Liability
Legal Definition
A contractual provision that restricts the amount or types of damages one party can be held responsible for, often used in mobile app developer agreements to cap financial risk and exclude indirect losses like lost profits or data corruption.
In Plain English
It's a contract rule that sets a maximum on what you can be sued for if something goes wrong, and sometimes blocks claims for things like lost business or data breaches.
Example in a Contract
Developer's total liability to Client for any claim arising from this Agreement shall not exceed the total fees paid by Client hereunder, and Developer shall not be liable for any indirect, incidental, special, or consequential damages, including loss of profits, data, or business interruption, regardless of the cause of action.
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