SB 562

Current law generally affords parties to a contract freedom to determine the

terms of the contract, and these contract terms are enforceable in court. However,

there are exceptions. In commercial contracts, the obligations of good faith,

diligence, reasonableness, and care established by law cannot be disclaimed by

contract. In contracts for the sale of goods, if the court finds that any clause of the

contract was unconscionable at the time it was made, the court may refuse to enforce

the contract, enforce only the remainder of the contract without the unconscionable

clause, or limit the application of the unconscionable clause to avoid any

unconscionable result.

Under this bill, any provision in a contract for the sale of goods or services that

indemnifies or holds harmless a party from or against liability for loss or damage

resulting from that party's own negligence or intentional acts or omissions, or that

requires another person to provide a defense to the party in connection with an

assertion of liability for loss or damage resulting from that party's own negligence

or intentional acts or omissions, is against public policy and void.