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

question 45

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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Definitions:

Legally Sufficient Consideration

Value legally recognized by the courts, required for a contract to be enforceable, involving a promise, act, or forbearance.

Aggravated Identity Theft

A crime involving the unauthorized use of another individual’s personal information to commit fraud, especially under circumstances that exacerbate the crime's severity.

EU Data Protection Directive

A decree issued by the European Union (EU) that prevents European companies from sharing ESI with countries that do not provide the same level of protection for the ESI as the EU.

Consideration

The value (such as cash, goods, or services) exchanged between parties in a contract, making the agreement legally binding and enforceable.