Legal Contracts Software Generator - Legal Contract Agreement Template for Reliance Damages

# Reliance Damages Agreement **This Reliance Damages Agreement ("Agreement") is made and entered into as of [Date], by and between:** **[Party A Name]** [Party A Address] ("Party A") AND **[Party B Name]** [Party B Address] ("Party B") **RECITALS** WHEREAS, Party A and Party B (collectively, the "Parties") wish to enter into an agreement that compensates one another for reliance damages incurred as a result of the other Party's actions or omissions; WHEREAS, the Parties acknowledge that reliance damages are meant to cover the costs incurred by one Party in reliance upon a promise or agreement made by the other Party; NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties agree as follows: ## 1. DEFINITIONS 1.1 "Reliance Damages" shall mean the costs incurred by the Party in reliance on the promise, representation, or agreement of the other Party, up to the date of breach. 1.2 "Effective Date" shall mean the date first written above. ## 2. OBLIGATIONS OF PARTIES 2.1 **Obligations of Party A** - Party A agrees to compensate Party B for any proven reliance damages incurred by Party B due to representations or agreements made by Party A, provided such reliance was reasonable and foreseeable. 2.2 **Obligations of Party B** - Party B agrees to compensate Party A for any proven reliance damages incurred by Party A due to representations or agreements made by Party B, provided such reliance was reasonable and foreseeable. ## 3. COMPENSATION 3.1 The Party claiming reliance damages ("Claimant") must provide documentation evidencing the incurred costs within [30] days from the date of the breach of agreement. 3.2 The Party against whom the claim is made ("Respondent") shall have [15] days from receipt of the Claimant's documentation to review and respond to the claim. 3.3 If the Respondent disputes the amount claimed, the Parties shall engage in good faith negotiations to resolve the dispute before seeking any legal remedies. ## 4. LIMITATIONS 4.1 No Party shall be liable for reliance damages that could not have been reasonably foreseen at the time of contract formation. 4.2 In no event shall any Party be liable for any consequential, incidental, or punitive damages. ## 5. GOVERNING LAW This Agreement shall be governed by and construed in accordance with the laws of the State of [State]. ## 6. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings, and negotiations, whether oral or written. ## 7. AMENDMENT This Agreement may be amended only by a written agreement signed by both Parties. ## 8. SEVERABILITY If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. ## 9. SIGNATURES IN WITNESS WHEREOF, the Parties have executed this Reliance Damages Agreement as of the Effective Date. **Party A:** _____________________________ [Party A Name] [Date] **Party B:** _____________________________ [Party B Name] [Date] --- *Please ensure that this document is reviewed by a qualified legal professional before use to ensure compliance with applicable laws and regulations.*