00:01
Number one, exclusion of liability for fraud.
00:16
A contract between speculative investment company and trusts and bonds incorporated excludes liability as a result of fraud.
00:25
This exclusion is enforceable if the parties have equal bargaining power.
00:35
Normally, contracts cannot exclude liability for fraud because fraud is an intentional wrongdoing.
01:17
Even if parties have equal bargaining power, courts usually will not enforce such a clause as it goes against public policy.
01:25
So the statement is likely inaccurate.
01:39
Two, breach by concrete company.
01:52
Concrete company agrees to lay a foundation for diamond properties, but fails to finish the job.
01:58
Diamond hires earth projects incorporated to complete the work.
02:01
In a suit for breach, diamond may recover from concrete the contract price.
02:07
Diamond can recover damages, but not the full contract price unless the entire contract was prepaid.
02:47
Instead, diamond is entitled to the cost of hiring earth projects, the cover cost, plus any other losses directly caused by concrete's breach.
02:57
So this statement is partially misleading...