Jurisdiction(s):
United Kingdom
Related legal acts
Key definition
Limitation of Liability definition

What does Limitation of Liability mean? In legal practice, a limitation of liability is a contract clause that allocates risk by capping, excluding or otherwise restricting the losses a party may recover for breach, non-performance or negligence. Typical features include an overall or per-claim liability cap, exclusions of indirect or consequential loss and loss of profits, time limits for claims, and carve-outs for liabilities that remain unlimited. This is a descriptive term (not a defined statutory concept), but its enforceability is governed by statute and common law. In England & Wales and Scotland, the Unfair Contract Terms Act 1977 (and in Northern Ireland, the...

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Precedent SLA Schedule: Service Credits, Change Control, Reporting, Exclusions and Termination for Critical Service Level Failure; with Annexed Service Levels Table

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Precedents
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Definitions

1.1 Within this Schedule, the following terms apply:

  • Business Day • refers to any day that is not, and shall not be, a Saturday, a Sunday, nor a public or bank holiday in England;
  • Change Control Procedure • denotes the procedure set out in clause [insert] (Change Control);
  • [ Critical Service Level Failure • means [define as appropriate]; ]
  • Month • signifies a calendar month;
  • Service Credits • are the credits payable to the Customer when the Service Levels are not met or satisfied, as described in paragraph 3 and the Annex; and
  • Service Levels • indicates the service levels detailed and defined in the Annex.

2 Service levels

2.1 The Supplier will deliver the Services in a manner that meets or surpasses the Service Levels stated in this Schedule.

2.2 The parties may add to, remove, or amend the Service Levels at any point during the Term, following the [Change Control Procedure]. For clarity, the Supplier shall not refuse or slow its agreement to any alteration to the Service Levels that is necessary to secure a fair, accurate, and consistent assessment of the Supplier’s performance in providing the Services...

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Web page updated on 22/05/2026

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