Contract remedies provided as exclusive will not preclude Code remedies if circumstances cause the remedy to fail in its essential purpose.

Question

Quizplus · Accepted Answer

This statement is true according to the Uniform Commercial Code (UCC) § 2-719(2), which states that "Where circumstances cause an exclusive or limited remedy to fail of its essential purpose, remedy may be had as provided in this Act." Therefore, even if a contract includes an exclusive remedy, if it fails to achieve its intended purpose, a party may still seek remedies under the UCC.

Contract Remedies Provided as Exclusive Will Not Preclude Code Remedies