A sends a package valued at $400.00 to B by means of the courier company X Co.In the contract between A and X Co.,there is a limitation of liability clause that limits X Co.'s liability for damage or loss caused to the goods by any reason whatsoever,including the negligence of X Co.and/or its employees,to $20.00.When the goods reach B,they are damaged.If A sues X Co.for the full $400.00
A)A will not succeed because the limitation of liability clause is effective to reduce A's damages to $20.00.
B)A will not succeed because A cannot prove that X Co.or its employees were negligent.
C)A will succeed because X Co.is a private carrier.
D)A will succeed because X Co.has a very high standard of care.
E)A will succeed because the court will strike out the limitation of liability clause.

Question

Quizplus · Accepted Answer

The limitation of liability clause in the contract between A and X Co. is effective to reduce A's damages to $20.00, regardless of the reason for the damage or loss caused to the goods, including the negligence of X Co. and/or its employees. Therefore, A cannot sue X Co. for the full $400.00.

A Sends a Package Valued at $400