Contracts are formed surrounding general stipulations, basically what is being sold or agreed to, and the limitation clause covers what a party will owe to the other if they don't hold up their end of the agreement. This consequence is also called a liability.
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contractual limitation period holds any party accountable for any damages or failure to fulfill his or her end of a bargain. When it comes to construction agreements, limitation periods pertain to claims are brought against a contractor. The contractor is then held responsible for damage that takes place around this time.A limitation period is the
period of time within which a party to a contract must bring a claim. In construction contracts, limitation periods are often relevant in relation to defects claims brought against contractors. Most construction contracts provide for a 'defects liability period', which may run from 12 to 24 months after completion.A
limitation of liability clause is essential in a contract because it provides certainty and acts as a safety net, clearly outlining what you are liable for in the event of a breach of contract. It allows the negotiating parties to understand the potential quantum of damages for breach by limiting, restricting, or capping them.A
limitation period is the maximum period which can pass from the time a cause of action arises until you can no longer commence court proceedings. A cause of action might arise where there is a breach of a material term of a contract.
