Allis Chalmers Sample Clauses

The "Allis Chalmers" clause refers to a contractual provision that limits a party’s liability for damages to only those specified in the contract, often excluding consequential or indirect damages. In practice, this clause is commonly found in commercial agreements, particularly in the context of equipment sales or service contracts, where the seller or service provider seeks to cap their exposure to claims arising from performance failures. Its core function is to allocate risk between the parties by clearly defining the extent of recoverable damages, thereby providing predictability and reducing the likelihood of costly, unforeseen liabilities.