What limitations exist for carrier liability regarding cargo loss or damage?

The correct answer highlights the key aspects of carrier liability concerning cargo loss or damage. Carrier liability is generally not unlimited; instead, it is typically restricted to certain parameters. These include the actual value of the goods, any specified maximum value per package, and the circumstances under which the carrier may have been negligent.

When cargo is lost or damaged during transport, the carrier is usually responsible to the extent of the actual value of the cargo. Furthermore, many carriers place limits on their liability for each package, which is often stipulated in the terms of their contracts. This means that if the cargo’s value exceeds these limits or if the loss was not due to carrier negligence, the carrier's liability could be significantly reduced.

In contrast, the other options suggest unlimited liability or liability based solely on the contract terms. However, carriers often have predefined limits to manage their risks and liabilities effectively, ensuring they are not liable for damages beyond the agreed-upon terms. It's crucial to understand that while contracts of carriage do play a significant role in defining liability, it is conditioned by the actual value of goods and the negligence of the carrier, hence aligning closely with the key points of the selected answer.