Classic Classic Quiz Clause Review- Limitation of Liability by Theladders Theladders 16 played - 13 yrs ago Pre-quiz on the Limitation of Liability clause (LoL) commonly found in contracts QUIZ 7 QUESTIONS medium 1 Which statement below is the closest definition of LoL? A clause that permits parties to a contract to reduce or eliminate the potential for damages if there is a breach of contract.A clause that prevents parties to a contract to reduce or eliminate the potential for damages if there is a breach of contract.None of the above. 2 Limitation of Liability protects The service provider or seller.The customer.An insurance provider. 3 In contracts, the LOL helps to Mitigate risks to a company.Caps any fees that company may need to pay to a customer if company breaches the contractAll of the above 4 Which of the below statements are accurate regarding courts and limitation of liability Courts are legally obligated to uphold (support) an LoL provision in an agreement.Courts can determine an LoL clause is invalid if such clause in unclear, illegal or not clearly expressed in the contract.None of the above. 5 What other contract provision allows the remainder of the contract to be valid if a judge determines the LoL to be invalid? Governing Law clauseArbitration clauseSeverability clause. 6 Of the choices below, which one is not a reason why a court will invalidate a limitation of liability provision? The provision was ambiguous or unclearThe LoL clause was too short.There was a public policy or statue prohibiting the enforcement of the provision 7 The LoL clause puts a cap (maximum amount) on Compensation and fees paid under the agreementInsurance coverageAll of the above A mistake in this Quiz ? Contact the author Commentaires