No Liability for Indirect, Consequential, Exemplary or Punitive Damages; Force Majeure Clause Samples

This clause limits the liability of the parties by excluding responsibility for indirect, consequential, exemplary, or punitive damages, and addresses situations where performance is prevented by force majeure events. In practice, this means that if one party suffers losses that are not a direct result of the other party’s actions—such as lost profits or reputational harm—or if extraordinary events like natural disasters or government actions make it impossible to fulfill contractual obligations, the affected party is not liable for those damages. The core function of this clause is to allocate risk by protecting parties from unforeseeable or disproportionate losses and to provide relief from liability when circumstances beyond their control prevent performance.