The limit of liability clause sets out limits on the parties’ obligations to pay the other party for losses arising from the agreement. The limit can be total (e.g. ‘not liable for any claims’) or partial (e.g. ‘not liable for indirect damages’), and can contain exceptions to the limits. The clause may also contain a monetary cap on liability (e.g. 50% of what was paid under the agreement). The limitation might apply to one or both parties, or be different for each party. It is most important to review this clause carefully to understand how the limitations apply to each party. This clause is often intensely negotiated.