Purpose and Approach
- Limitation of Liability. A failure in performance might result in users incurring some kind of a loss or damage. Therefore, it is critical that users agree that the website has only limited liability in terms of the types of damages and the total amount of damages incurred by a user. Enforceability of such a provision may depend upon the jurisdiction.
- Choice of Law/Venue. If there is a dispute between a user and a website, the website would want to be able to choose what laws apply and where any disputes will be conducted. Defending an action in a distant location could put a significant financial burden on a website.