Worked Walkthrough: Calculate the Real Liability Cap

A $480,000 annual SaaS contract is paid upfront. The cap is 'fees paid in the six months before the event giving rise to the claim.' A security incident occurs in month 10. Cap math: fee base -> time window -> carveouts -> exclusions The common shortcut is to read 'six months' as half the annual value. The clause says fees paid in the prior six months, which can be very different from fees attributable to that period. Fee base Identify whether the cap uses fees paid, fees payable, subscription value, affected order fees, or all amounts under the agreement. The…

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