Question

RV Company agrees to buy a certain quantity of vintage campers from Sales Inc. Their contract limits consequential damages for lost profits resulting from the use of the goods. This limit is not necessarily unconscionable because

Answer 1

Answer:

consequential damages cover only reasonable foreseeable losses.

Explanation:

• The contract limits the resulting loss to lost profits from the use of the goods. The limit is not necessarily unconscious because lost profits are not necessarily significant and can be considered as direct or indirect losses.
• the contract may apply to both the lease and the sale and excluding some from the contract simply because it is a commercial loss makes no sense.
• so limit is not necessarily unconscionable because consequential damages cover only reasonable foreseeable losses.