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Limitation of Remedies Clause Review

Reviewing limitation of remedies clauses means checking whether the available remedies actually match the risks you're taking on and whether the exclusions are reasonable for both sides. Unbalanced remedies are both unenforceable and a signal that you may have been outmaneuvered in the negotiation.

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Why It Matters

A limitation of remedies clause restricts the types of legal relief a party can seek when a contract is breached, commonly excluding consequential damages, lost profits, or punitive awards regardless of how serious the harm is.

These clauses can dramatically reduce your ability to recover losses after a breach, and AI can identify when remedy limitations are stacked with other protective clauses to create a contract that is nearly impossible to enforce against the other party.

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