River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is
A) a limitation-of-liability clause.
B) an exculpatory clause.
C) a liquidated damages clause.
D) a quasi contract.

Question

River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is
A) ​a limitation-of-liability clause.
B) an exculpatory clause.​
C) ​a liquidated damages clause.
D) ​a quasi contract.

Quizplus · Accepted Answer

This is a limitation-of-liability clause because it restricts the amount of damages a party can recover in the event of a breach, specifically excluding damages for non-fraudulent or unintentional breaches.