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
The clause operates to define the outer boundary of financial exposure for Microsoft across all claims, establishing a predetermined damage ceiling regardless of the nature or magnitude of alleged harm. This cap applies as the exclusive remedy available to customers, meaning no other damages forms (consequential, indirect, punitive) may be pursued beyond this threshold.
Customers' recoverable damages are capped at either their 12-month service payments or $100, whichever is higher, with this amount functioning as the sole available remedy for any claim against Microsoft. The terms apply as written upon continued service use, establishing this damage limitation as the governing standard for all disputes.
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"To the extent permitted by law, the total liability of Microsoft, and your exclusive remedy, is limited to direct damages up to the amount you paid for the service in the 12 months before the claim arose or USD $100.00, whichever is greater.— Excerpt from Microsoft's Microsoft Services Agreement (Legacy)
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The clause operates to define the outer boundary of financial exposure for Microsoft across all claims, establishing a predetermined damage ceiling regardless of the nature or magnitude of alleged harm. This cap applies as the exclusive remedy available to customers, meaning no other damages forms (consequential, indirect, punitive) may be pursued beyond this threshold.
Customers' recoverable damages are capped at either their 12-month service payments or $100, whichever is higher, with this amount functioning as the sole available remedy for any claim against Microsoft. The terms apply as written upon continued service use, establishing this damage limitation as the governing standard for all disputes.
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