This analysis describes what Egnyte's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The clause operates to limit the types of damages recoverable in disputes between the parties by restricting claims to direct damages only. This allocation of risk affects the financial exposure structure for both parties across all categories of legal liability.
Users operating under these terms are restricted in the damages they may recover to direct losses only; claims for lost profits, data loss, business interruption, or substitute services are excluded from liability recovery regardless of the underlying cause of harm.
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"IN NO EVENT WILL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER FOR ANY LOST PROFITS, LOSS OF USE, LOSS OF DATA, COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, OR FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES HOWEVER CAUSED AND, WHETHER IN CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.— Excerpt from Egnyte's Egnyte Terms of Service
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The clause operates to limit the types of damages recoverable in disputes between the parties by restricting claims to direct damages only. This allocation of risk affects the financial exposure structure for both parties across all categories of legal liability.
Users operating under these terms are restricted in the damages they may recover to direct losses only; claims for lost profits, data loss, business interruption, or substitute services are excluded from liability recovery regardless of the underlying cause of harm.
ConductAtlas has identified this type of provision across 3 platforms. See the full comparison.
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