Business, 21.03.2020 11:12 ashleypere99

AAA and XXX companies are both major international conglomerates. They are negotiating a contract whereby AAA will install a computer system for XXX. One clause in the contract states that AAA will not be liable for damages caused by the negligent installation of the computer system, except that AAA warrants the system and will fix any problem for a period of two years following installation. AAA completes the installation of the computer system. XXX loads extensive amounts of information on the system, but all of it is destroyed because AAA negligently installed the memory chips. AAA fixes the memory, but XXX incurred significant expenses in recreating the lost information. XXX sues for these expenses and AAA defends with the noted clause in the contract. Who wins?
A) XXX wins; these types of clauses are never enforceable.
B) XXX wins; exculpatory clauses are usually valid, but this one would not be valid since it attempts to relieve AAA of liability for negligent behavior.
C) XXX wins; this exculpatory clause is not valid because it is unconscionable.
D) AAA wins; this exculpatory clause is most likely enforceable.

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AAA and XXX companies are both major international conglomerates. They are negotiating a contract wh...

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