Be Wise › Contract glossary › Limitation of liability
Limitation of liability
A limitation of liability clause caps how much one party can recover from the other and excludes certain types of loss. Liability for death or personal injury caused by negligence, and for fraud, can never be excluded.
In more detail
Between businesses, limitations must be reasonable under the Unfair Contract Terms Act 1977; against consumers they must also be fair under the Consumer Rights Act 2015.
In Scotland
In Scotland, the Unfair Contract Terms Act 1977 applies through its Part II.
Put it into a contract
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England & Wales appScotland appReviewed 2026-09-24. General legal information, not legal advice.