Definition
An exclusion, cap, or condition the accepting party claims against a recorded liability. Carve-outs are recorded on the liability record rather than reserved for litigation, because the forensically useful moment to assemble an excuse is before the harm, in the issuer's words.
A carve-out on the record is a price: it states how much of the risk the liability does not cover and therefore who carries the rest. A carve-out that surfaces for the first time in a dispute is evidence of concealment rather than a term of the deal.
Scale: Organizational · Phases: Design, Deployment, Audit · Measurability: Fully measurable · Maturity: Core concept
Adjacent terms
References
- STD-08 Delegation · Standard