A contract between E-Debits, Inc., and First Credit Corporation includes a provision excluding liability as a result of fraud. This provision is
A) enforceable because the parties are protected from liability.
B) enforceable because the parties consented to it.
C) enforceable if the parties have equal bargaining power.
D) not enforceable.

Question

Quizplus · Accepted Answer

A provision excluding liability for fraud is generally not enforceable because it goes against public policy to allow parties to contract out of liability for fraudulent acts.

A Contract Between E-Debits, Inc