Dwelling Inc. enters into a contract with Estate Management to manage and maintain Dwelling's apartment complex. Their contract contains a clause that limits Estate's liability except in cases of gross negligence or willful misconduct. With respect to this clause, a court would most likely
A)enforce it.
B)reform it.
C)refuse to enforce it.
D)reallocate the risk expressed in it.

Question

Quizplus · Accepted Answer

Courts generally enforce limitation of liability clauses in contracts unless they are unconscionable, violate public policy, or exempt parties from liability for gross negligence or willful misconduct. Since this clause specifically does not exempt Estate Management from liability for gross negligence or willful misconduct, it is likely to be enforced.