Limitation Fund

A Limitation Fund is a financial reserve used primarily in legal contexts to manage funds when there is a possibility of disputes or claims arising. It acts as a safeguard, ensuring that there are sufficient resources set aside to cover potential liabilities or compensation payments. This fund often relates to situations where the timing of claims is restricted, enabling organizations to address any legal responsibilities effectively. By establishing a Limitation Fund, entities can better manage financial risks associated with uncertainties in litigation or other claims, providing a structured way to handle legal financial obligations as they arise.