Maximum liability provisions are also sometimes referred to as the liability cap. These provisions limit the maximum amount that can be claimed from the defaulting Party.
The maximum liability provisions are often a hot topic of negotiation. For example, suppose you are a Provider whose liability is limited to a specific amount. In that case, you want this amount to be as low as possible to ensure that the business will hopefully stay afloat if things go south. On the other hand, if you are the Customer, you want to recover an amount that will sufficiently compensate you for your losses.
Finding a balanced approach to the maximum liability provisions often involves stipulating different liability caps for different types of breaches. For example, if there is a breach of the data protection provisions, the cap will be calculated one way, and if there is a breach of the confidentiality provisions, the cap will be calculated another way.