What type of damages is the City not liable for according to the agreement?

The City is not liable for special or consequential damages according to the agreement because these types of damages are typically defined as indirect damages that arise not from the immediate act but rather from secondary effects. Special or consequential damages can include losses that a party incurs as a result of indirect impact or losses that are not straightforward or intended consequences of a breach of contract. In legal terms, these damages can create a significant amount of uncertainty regarding liability since they vary widely and are not directly tied to the agreement's execution.

The distinction made in the agreement helps protect the City from claims that could escalate significantly beyond the actual damages that stem from any failure to perform under the contract. This limitation fosters a more predictable and manageable risk environment, ensuring that the City is only held accountable for damages that are direct and foreseeable, rather than for potentially expansive claims based on indirect effects of a contractual issue.