Liability cap

A contract provision limiting the maximum amount one party can be required to pay the other in damages, often capped at the total fees paid under the contract.

Example

An agency's MSA caps its total liability for any claim at the total fees the client paid in the preceding 12 months, protecting the agency from open-ended financial exposure.

Why it matters for agencies

Standard risk-management language, not scope-specific, but part of the same MSA that typically houses the scope-defining clauses — worth understanding as a package rather than in isolation.