Question

Bridget contracts with Hunter to purchase $30,000 worth of goods for her store. Hunter wants a clause in the contract stating that neither party will sue the other after one year from the date of breach of contract. Which of the following is true of this situation?

a) The clause is unenforceable.
b) The clause is valid if it is a standard industry practice.
c) The clause is valid if both parties agree to it.
d) The clause is always unenforceable under any circumstances.

Answer 1

The clause is valid if both parties agree to it. Option C is correct.

Step-by-step explanation:

Contracts often include clauses that dictate certain terms and conditions between parties. In this situation, Hunter wants a clause stating that neither party can sue the other after one year from the date of breach of contract. The enforceability of such a clause depends on the agreement of both parties.

Contracts generally allow parties the freedom to negotiate and agree on terms that are mutually beneficial. If both Bridget and Hunter agree to include this clause in their contract, it becomes a valid part of their agreement. Option C