A Clause That Exempts a Party from Liability for Failing

question 46

Multiple Choice

A clause that exempts a party from liability for failing to perform some or all of its contractual obligations is called

• A) a liability exempting clause.
• B) a collateral clause.
• C) an exemption clause.
• D) a limitation clause.
• E) an exempting clause.

---

Definitions:

Incidental Damages

Incidental damages refer to reasonable expenses incurred by a party as a result of another party’s breach of contract, including costs to mitigate damages.

Carrier

An entity that offers transportation services for goods or people, often used in the context of shipping or telecommunications.

Bailee

A bailee is a person or party to whom goods are delivered for a specific purpose, under an agreement or contract, with the obligation to return the goods after the purpose is fulfilled.

In Transit

Refers to goods or individuals that are in the process of being transported from one location to another.