Which of the following statements is true of consequential damages?
A) Liability for consequential damages cannot be excluded by an agreement between the parties.
B) A limitation on the liability for consequential damages cannot be enforced if it is unconscionable.
C) Consequential damages do not involve the recovery of damages caused by consumer goods.
D) Exclusion of or limitation on consequential damages is permitted where the loss is not commercial.

Question

Quizplus · Accepted Answer

If a liquidated damages clause is not enforceable because it is a penalty or unconscionable, then the injured party can recover the actual damages that were suffered. Liability for consequential damages resulting from a breach of contract (such as lost profits or damage to property) may also be limited or excluded by agreement. The limitation or exclusion is not enforced if it would be unconscionable.

Which of the Following Statements Is True of Consequential Damages