Plain-English glossary
Liability cap
A clause limiting how much money one side can recover if something goes wrong.
Why it matters
A reasonable cap can be normal, but very low caps can leave users without meaningful remedies.
Words to watch for
limited to fees paidmaximum liabilityone dollarno indirect damages
In layman's terms
The company caps how much money they might have to pay you if something goes wrong. Even if they cause a big problem, you may only get a small amount back.
Plain-English example
Even if the company causes a loss, its total responsibility may be limited.