Exceptions to the Economic Loss Doctrine

Economic Loss Doctrine An economic loss refers to a financial loss and damages suffered by a person or entity, which arise from a defect in the qualitative nature of the product, service, or improvement that was bargained for. Generally, an economic loss is observed on assets (i.e., “the books”) rather...

Liquidated Damages and Limitation of Liability Clauses

Liquidated damages clauses and limitation of liability clauses are common in contracts but have different roles. Liquidated damages clauses try to fix, in advance, the amount of reasonable compensation for actual damages. Limitation of liability clauses restrict the amount of compensation available, regardless of the damages suffered. While the provisions both...