Clear Creek Corporation enters into a contract with Brightside Management Associates to manage and maintain Clear Creek's apartment complex.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

Quizplus · Accepted Answer

The clause in the contract that states neither party can recover damages for a non-fraudulent or unintentional breach is a limitation-of-liability clause. This type of clause is commonly used in contracts to limit the amount of liability one party can incur in the event of a breach of contract.

Clear Creek Corporation Enters into a Contract with Brightside Management