Asked by Samantha Beveridge on Jul 21, 2024
Verified
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.
Gross Negligence
An extreme lack of care that demonstrates a willful or reckless disregard for the safety or lives of others, significantly beyond ordinary negligence.
Willful Misconduct
Intentional wrongdoing or reckless disregard for the safety and rights of others.
Limits Liability
Refers to strategies or legal structures, like forming an LLC, aimed at reducing the financial risk individuals bear.
- Comprehend the applicability of contractual provisions, including liability exclusions and restrictions.
Verified Answer
MM
Michelle MinjeongJul 25, 2024
Final Answer :
A
Explanation :
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.
Learning Objectives
- Comprehend the applicability of contractual provisions, including liability exclusions and restrictions.