Discussion Question, accounting homework help

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Topic 2: Contract Terms

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This Discussion will assess how well you understand contract terms, specifically Exculpatory Clauses. Read the following scenario and respond to the questions that follow.

Sarah entered into a written contract with Safe Storage, Inc. The agreement included a clause excusing Safe Storage, Inc. from any liability for loss or damage, even if the loss or damage resulted from Safe Storage’s negligent acts. Sarah signed the agreement. A fire destroyed the warehouse and all of its contents, including Sarah’s household goods and furniture. Sarah claims that Safe Storage, Inc. is liable for the full value of the contents, which is approximately $10,000.

  • If the fire was not the result of Safe Storage’s negligence is Sarah correct?
  • If the fire was a result of Safe Storage’s negligence is Sarah correct?

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