Asked by Jagmeet Sahota on Jul 16, 2024
Verified
Which type of contractual provision affects remedies?
A) Cover.
B) Liquidation or limitation of damages.
C) Modification or limitation of remedy.
D) Both limitation of damages and limitation of remedy are correct.
Liquidation
The process of closing a business and distributing its assets to claimants, often during bankruptcy.
Limitation of Damages
Legal provisions or contract terms that restrict the amount of compensation for breach of contract or injury.
Contractual Provision
A specific clause or term within a contract that outlines duties, rights, or obligations of the parties involved.
- Examine how contract terms affect liability and the availability of remedies, focusing on exclusion clauses.
Verified Answer
JE
Joshuah EwingJul 20, 2024
Final Answer :
D
Explanation :
Both liquidation or limitation of damages and modification or limitation of remedy are types of contractual provisions that affect remedies. Liquidation or limitation of damages provisions set a fixed amount for damages in case of a breach, while modification or limitation of remedy provisions can alter or limit the remedies available to the parties in a contract.
Learning Objectives
- Examine how contract terms affect liability and the availability of remedies, focusing on exclusion clauses.