Microsoft disclaims all express and implied warranties for its services, which are provided on an as-is basis. The agreement limits recoverable damages to the user's monthly service fee at the time of loss or $10 for free services, excluding all other categories of damages including consequential, indirect, and punitive damages.
This analysis describes what Microsoft'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
This provision caps Microsoft's financial liability at one month of service fees (or $10 for free services) regardless of the nature or extent of the harm, and disclaims all warranties including implied warranties of merchantability and fitness for a particular purpose. The provision applies to the maximum extent permitted by applicable law, with the agreement acknowledging that local law rights may not be affected.
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Compare across platforms →"MICROSOFT, AND OUR AFFILIATES, RESELLERS, DISTRIBUTORS, AND VENDORS, MAKE NO WARRANTIES, EXPRESS OR IMPLIED, GUARANTEES OR CONDITIONS WITH RESPECT TO YOUR USE OF THE SERVICES. YOU UNDERSTAND THAT USE OF THE SERVICES IS AT YOUR OWN RISK AND THAT WE PROVIDE THE SERVICES ON AN "AS IS" BASIS "WITH ALL FAULTS" AND "AS AVAILABLE." If you have any basis for recovering damages (including breach of these Terms), you agree that your exclusive remedy is to recover, from Microsoft or any affiliates, resellers, distributors, Third-Party Apps and Services providers, and vendors, direct damages up to an amount equal to your Services fee for the month during which the loss or breach occurred (or up to $10.00 if the Services are free). You can't recover any other damages or losses, including direct, consequential, lost profits, special, indirect, incidental, or punitive.Excerpt from Microsoft's Services Agreement (Legacy)
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This provision caps Microsoft's financial liability at one month of service fees (or $10 for free services) regardless of the nature or extent of the harm, and disclaims all warranties including implied warranties of merchantability and fitness for a particular purpose. The provision applies to the maximum extent permitted by applicable law, with the agreement acknowledging that local law rights …
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