Contracting parties can agree to limit the liability for a breach to less than what is recoverable under the principles of contract law.

Question

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Parties to a contract can agree to limit liability for a breach through a limitation of liability clause, which sets a cap on the amount one party has to pay the other in case of breach, often making it less than what might be recoverable under general contract law principles.

Contracting Parties Can Agree to Limit the Liability for a Breach