top of page

Indirect damage - the red flag clause

One of the most common contexts where you find indirect damages in a contract may be in the limitation of liabilities, where liability for “indirect or consequential” damage or loss is limited or excluded.

By not properly addressing indirect damages in your contracts you can open yourself to large amounts of liability, this can potentially be catastrophic to your company as a deal may cost you multiple times more than the actual contract value.

Therefore, it is central that you carefully review any indirect damage clause in a contract.


Please note that this document is not legal advice. Legly, and its representatives, are not responsible for the content herein or the suitability for your company’s business. We recommend you use this in conjunction with legal advice and not as a substitute.



Online contract review with AI

bottom of page