A home warranty company with a limited liability clause

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A home warranty company with a limited liability clause

A home warranty company has a limited liability clause that pays no more than
1500 for a dispute. I have a small claim for 3000 in the state of New Jersey. The
home warranty company is willing to settle for 1500. Am I capped by this amount
due to the clause? Or can or can I still seek 3000 in a suit?

Asked on March 9, 2018 under Business Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You are capped by the liability limitation, to $1,500. Such limitations on liability are legal and are fairly common in a number of different types of contracts (a warranty is a contract). By agreeing to/purchasing this warranty, you agreed to its terms, including the limitation on liability.


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