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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.216-24 Limitation of Government Liability.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause caps how much the contractor may spend or obligate under a letter contract, and it caps the Government's liability if the contract is terminated. It matters because it puts a dollar ceiling on both the contractor's authorized actions and the Government's exposure.

Applies to: Contractors under a letter contract

What it requires

  • Do not make expenditures or incur obligations exceeding the stated dollar amount.

Key terms: letter contract · expenditures · obligations · terminated · Government liability

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 16.603-4(b)(2), insert the following clause in solicitations and contracts when a letter contract is contemplated:

Limitation of Government Liability (APR 1984)

(a) In performing this contract, the Contractor is not authorized to make expenditures or incur obligations exceeding ___ dollars.

(b) The maximum amount for which the Government shall be liable if this contract is terminated is ___ dollars.

(End of clause)

Sections it refers to

Sections that refer to it

← 52.216-23 Execution and Commencement of Work. · 52.216-25 Contract Definitization. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.216-24 Limitation of Government Liability · SpendQuery