Which of the Following Statements About the Interpretation of Exemption

question 3

Multiple Choice

Which of the following statements about the interpretation of exemption clauses is false?

• A) An exemption clause can be interpreted in different ways, depending on which party seeks to enforce it.
• B) An exemption clause may not be used to escape liability arising from a fundamental breach, that is, a breach which negates the benefit the innocent party expected to obtain from the contract.
• C) Clauses which completely exclude the liability of one of the contract parties are construed more strictly than clauses that merely limit his liability.
• D) None of the options given is correct.

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Definitions:

Nonprofit Organization

An entity operating for purposes other than generating profit, typically focused on social, educational, or charitable activities.

Revenue Received

Income that an organization receives from its normal business operations, usually from the sale of goods and services to customers.

Positive Externality

A beneficial effect experienced by a third party, resulting from an economic transaction that they are not directly involved in.

Beautiful Lawn

A well-maintained and visually appealing grass area around homes or in parks, often characterized by green, lush, and orderly appearance.