The Courts Are Reluctant to Allow a Breaching Party to Rely

question 39

True/False

The courts are reluctant to allow a breaching party to rely on the protection of a limited liability clause when the breach is severe and undermines the foundation of the contract.

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Definitions:

Legitimate Power

Authority that is officially granted to a leader or manager by an organization, recognized as rightful by those who are governed by it.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Order

The arrangement or organization of people, tasks, or things following a particular sequence, pattern, or method.

Coercive Power

This refers to the ability of a person to force others to comply with orders or requests through threats, punishment, or negative consequences.