Should you waive consequential damages and how does that affect your remedies in the event of breach of contract?
You may have noticed some non-disclosure agreements that include confidentiality provisions that limit or exclude liability for damages in certain circumstances.
This exclusion usually appears in the “limitation of liability” or “miscellaneous clauses” section. Other agreements where these waivers are common include data security and IT services contracts, as well as due diligence and acquisition agreements.
This exclusion or limitation language is typically worded as “neither party will be responsible to the other for indirect, special, or consequential losses.”
This waiver may have serious consequences for the party who discloses confidential information.
There are several types of damages available in breach of contract cases. Let’s start by identifying them.
Watch the video for more.
Not legal advice. For high-level educational purposes only.