Legal dictionary

Exclusion clause

Is a clause in a contract stating that a party is not liable for what would otherwise be a breach, or that his liability for that particular breach is limited. A true exclusion clause recognises a potential breach of contract and then excludes liability for it.

Alternatively, the liability for the breach may be limited to a certain amount, or the claim for any loss as a result of a particular breach must be commenced within a certain period of time.

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