Which of the following is a distinguishing characteristic of a limited liability clause?
A) It relieves or limits liability of a party for damages in particular circumstances.
B) It may be used to punish parties for non-compliance with contractual promises.
C) It requires the parties to purchase insurance.
D) It relieves parties in a variety of circumstances from contractual obligations.

Question

Quizplus · Accepted Answer

A limited liability clause specifically aims to relieve or limit the liability of a party for damages under certain conditions, rather than punishing non-compliance, mandating insurance purchase, or broadly relieving parties from contractual obligations.

Which of the Following Is a Distinguishing Characteristic of a Limited