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Which of the Following Statements Is TRUE with Respect to a Contractual

Question 21

Multiple Choice

Which of the following statements is TRUE with respect to a contractual clause that protects one party from the consequences of breach (exclusion or limitation of liability clauses) ?


A) Such clauses are enforced only if they are the product of equal bargaining power.
B) Such clauses may reduce or limit liability, but they cannot entirely exclude liability.
C) Such clauses are enforced only if they appear in written and signed contracts.
D) Depending upon the circumstances, such clauses may be enforced even if the party who wants to sue for breach did not read the clause.
E) Such clauses are invalid if they are written in language that is difficult for a consumer to understand.

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