Creekside Property Corporation enters into a contract with Downstream Management Associates to manage and maintain Creekside's apartment complex.Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach.This is
A)a limitation-of-liability clause.
B)an exculpatory clause.
C)an illegal clause.
D)a quasi contract.

Question

Quizplus · Accepted Answer

This clause is a limitation-of-liability clause, as it limits the liability of both parties in the event of a non-fraudulent or unintentional breach. It does not completely release either party from liability, which is what an exculpatory clause would do. Furthermore, there is nothing illegal about this type of clause. Finally, a quasi contract is an implied-in-law contract that is imposed by the court to prevent injustice, which is not relevant to this question.

Creekside Property Corporation Enters into a Contract with Downstream Management