LTCAP Clause Samples

The LTCAP clause establishes a limit on the total liability that one party may incur under a contract. Typically, this clause sets a maximum monetary cap on damages or claims, often calculated as a percentage of the contract value or a fixed sum, and may exclude certain types of losses such as those resulting from gross negligence or willful misconduct. By defining the upper boundary of financial exposure, the LTCAP clause provides certainty for both parties and helps manage risk by preventing disproportionately large claims that could arise from breaches or failures under the agreement.