use limitation
Definition
A use limitation is a restriction that controls how someone can use information, property, or resources that have been shared or transferred. When you agree to a use limitation, you are promising that you will only use what you received for specific, approved purposes and nothing else.
Example
A supplier shares their customer database with you so you can fulfill orders, but the contract includes a use limitation saying you cannot use that data for your own marketing campaigns.
Watch Out
Violating a use limitation, even accidentally, can expose your business to a lawsuit or heavy financial penalties, so always read these restrictions carefully before signing any agreement.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.