A contract between E-Debits,Inc. ,and Fiscal 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 as a result of fraud is generally considered against public policy and is therefore not enforceable. Parties cannot contract away their liability for intentional wrongdoing, such as fraud.

A Contract Between E-Debits,Inc