Article
Limitation Of Liability Clauses In India: Are They Really Enforceable?
Limitation of liability clauses are generally enforceable in India, but only within limits that the Indian Contract Act, 1872 and the courts have drawn. A cap on damages is treated as a legitimate allocation of commercial risk between informed parties; a clause that tries to excuse fraud, wilful misconduct or a deliberate breach, or that is imposed through unequal bargaining power, is far more likely to fail.
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