Understanding Damages Waivers: Consequential, Incidental, Lost Profits, and More | Practical Law

Understanding Damages Waivers: Consequential, Incidental, Lost Profits, and More | Practical Law

A Practice Note discussing waivers of consequential, incidental, indirect, lost profits, special, and other damages (often referred to as consequential damages waivers) in limitation of liability clauses in commercial contracts. This Note describes the categories of damages and includes guidance for understanding and negotiating consequential damages waivers, including common carve-outs, and ensuring consistency with indemnification provisions.

Understanding Damages Waivers: Consequential, Incidental, Lost Profits, and More

Practical Law Practice Note w-023-8234 (Approx. 11 pages)

Understanding Damages Waivers: Consequential, Incidental, Lost Profits, and More

by Practical Law Commercial Transactions
MaintainedUSA (National/Federal)
A Practice Note discussing waivers of consequential, incidental, indirect, lost profits, special, and other damages (often referred to as consequential damages waivers) in limitation of liability clauses in commercial contracts. This Note describes the categories of damages and includes guidance for understanding and negotiating consequential damages waivers, including common carve-outs, and ensuring consistency with indemnification provisions.