Best in Law: Understanding contractual limitations on liability

What do contractual limitations on liability mean for your business?
Just about every commercial contract you sign has a contractual limitation on liability. And, even if you do not sign a contract, a limitation on liability will frequently be included in the terms and conditions attached to purchase orders for the goods and services that you buy.
The overwhelming majority of contracts and purchase orders are fulfilled without a major issue, but what impact does the limitation on liability have