Legal review

AI-generated clauses validated by attorneys

Contracts, compliance documents, legal briefs — legal-domain reviewers verify legal accuracy, enforceability, and jurisdictional correctness before finalisation.

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Input Contract clause

Section 7.2 — Limitation of Liability

In no event shall either party be liable to the other for any indirect, incidental, special, consequential, or punitive damages, including but not limited to loss of profits, data, use, or goodwill, arising out of or in connection with this Agreement, regardless of the theory of liability, even if advised of the possibility of such damages.

The total aggregate liability of either party shall not exceed the total amounts paid by Customer in the twelve (12) months preceding the claim.

Reviewer notes 2 issues found

Consequential damages carve-out

Standard exclusion of consequential damages is present but missing the customary carve-out for IP infringement and confidentiality breach. Most jurisdictions enforce this clause, but without carve-outs it may be unconscionable in B2C contexts. Recommend adding carve-outs for Sections 8 (Confidentiality) and 9 (IP Rights).

Liability cap scope

Cap tied to "twelve months preceding the claim" — standard for SaaS but consider whether this should be "aggregate fees paid under this Agreement" for multi-year contracts. Current phrasing resets annually, which may be inappropriate for enterprise agreements with multi-year terms.

Enforceability

Clause language is consistent with UCC Article 2 and most state common law. "Regardless of theory of liability" phrasing is enforceable in Delaware and California. No jurisdictional red flags.

Verdict

Pass Corrections needed Fail

Reviewer: legal domain — corporate law focus, 3,200+ legal reviews completed

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