Contracts
Which of the following contract provisions is considered unconscionable and likely unenforceable?
AA liquidated damages clause for earnest money forfeiture
BA clause requiring a homebuyer to waive all rights to future legal action regardless of seller misconduct✓ Correct
CA repair credit negotiated between buyer and seller
DA closing date extension clause
Explanation
A clause requiring a buyer to waive all future legal rights regardless of misconduct is unconscionable — so one-sided that courts will refuse to enforce it. Unconscionable provisions are void as against public policy.
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