Most contracts limit how much each side can owe the other in damages. When liability is "uncapped," that ceiling is removed — exposure is theoretically unlimited, up to whatever a court awards.
For an owner-operator, uncapped liability on your side is the dangerous version. If a vendor negotiates unlimited liability against you — say for a data breach or an IP claim — a single incident could exceed the entire value of the deal, or the business. Vendors, meanwhile, almost always cap their own liability at a small number.
Look for symmetry. If the vendor caps its liability at "fees paid in the last 12 months" but leaves yours uncapped, that is a red flag. Push for mutual caps, with narrow, specifically negotiated carve-outs rather than blanket exposure.
"Customer's liability under this Agreement shall not be limited by Section 9 (Limitation of Liability)." — i.e., your side is uncapped.
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