explain how the term which says we are only liable to you as set out
in this agreement would come into being

In plain english that means your remedies are limited to those spelled
out elsewhere in the agreement.  In other words, if the other party
doesn't live up to your expectations, you can only "get even" by the
methods and subject to the limits expressly defined in the agreement. 
If you want to be able to sue for money, it better say that is an
option.