Liability cap
A contractual limit on the maximum amount a party can be required to pay under a particular obligation, such as a guarantee.
Related terms
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Guarantee liability
The amount or obligation a guarantor may have to pay under the wording of a valid and enforceable guarantee.
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Capped guarantee
A guarantee that limits the guarantor’s maximum liability to an agreed amount or defined category of sums.
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Joint liability
An obligation shared by two or more people or organisations. The agreement and law determine whether each party can be pursued for all or only part of the debt.
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