This clause says that one specific remedy (usually a refund or repair) is the only way to fix a breach—you cannot sue for damages, replacement, or anything else. For example: "If the software doesn't work, your only remedy is a refund of the license fee." This limits your options and forces you to accept whatever fix the other party offers. Courts in the UK and US will enforce sole remedy clauses, but they may refuse to enforce them if the remedy becomes "worthless" (for example, if the company goes bankrupt and cannot refund you).
Avoid accepting a sole remedy clause unless the remedy is genuinely valuable to you. If the only remedy is a refund, ask: what if the company is insolvent? If the only remedy is repair, ask: what if they cannot fix it? Try to add alternatives, such as "repair or replacement at your choice" or "refund or damages, whichever is greater." If you must accept a sole remedy, make sure it includes a time limit for the other party to perform (e.g., "repair within 30 days or refund automatically applies").
Frequently Asked Questions
What does this clause mean in simple terms?
This clause says that one specific remedy (usually a refund or repair) is the only way to fix a breach—you cannot sue for damages, replacement, or anything else.
Why should I care about this clause?
For example: "If the software doesn't work, your only remedy is a refund of the license fee." This limits your options and forces you to accept whatever fix the other party offers.
What are my options?
Courts in the UK and US will enforce sole remedy clauses, but they may refuse to enforce them if the remedy becomes "worthless" (for example, if the company goes bankrupt and cannot refund you).