Why is limitation of liablitiy clause included when damage provision is there

Question

Accepted Answer

Limitation of liability clause is included to cap the maximum amount of damages that can be claimed.

Limitation of liability clause is a common provision in contracts that caps the maximum amount of damages that can be claimed.
It is included to limit the potential liability of the party in case of breach of contract or other legal claims.
The damage provision, on the other hand, specifies the types of damages that can be claimed and the circumstances under which they can be claimed.
By including both provisions, the parties can negotiate and agree on the maximum amount of damages that can be claimed in case of a breach or other legal claims.
For example, a software company may include a limitation of liability clause in its contract with a customer to limit its liability to the amount paid by the customer for the software.
This helps to protect the software company from potentially large damages claims in case of a breach or other legal claims.
Overall, the inclusion of both provisions helps to balance the interests of the parties and reduce the risk of costly legal disputes.

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