In the mining case, what is the effect of the late-delivery clause on damages?

• A. The clause completely bars damages for late delivery.
• B. The clause has no effect on damages for later delays.
• C. The clause only reduces damages by the extent of the delay.
• D. The clause requires double damages for any delay.

Answer: (A)

A late-delivery clause that says damages for late delivery are completely barred is an express waiver of liability for delays. In the mining case, the contract allocated the risk by precluding any damages for late delivery, so the party seeking compensation for delays cannot recover. This is a clear example of a liability limitation: time is not a remedy here, and the contract itself says no damages will be paid for late delivery. The clause does not imply penalties, double damages, or partial reductions; it flatly removes the damages associated with the delay.