Parties may contract to limit damages in the event of certain occurrences. See Farnham v. Superior Court (Sequoia Holdings, Inc.), 70 Cal. Rptr. 2d 85, 90 (Cal. Dist. Ct. App. 1997); Morris v. Chevrolet Motor Div. of Gen. Motors Corp., 114 Cal. Rptr. 747, 752 (Cal. Dist. Ct. 1974) (unpublished). Where an agreement provides for a limitation of damages upon termination or a default on a loan, a claim by the non-defaulting or non-terminating party for lost profits or consequential damages is not per se barred by the agreement.
(Italics added.) In Morris v. Chevrolet Motor Division, (4th Dist. Div. 1, Civ. No. 12803, June 19, 1974), cited by both parties, it was held that an action for rescission of a motor vehicle conditional sale contract was an action "on a contract" within the meaning of Civil Code sections 1717 and 2983.4, thus entitling the successful plaintiff to attorneys' fees. A rehearing in the Morris case was granted on July 19, 1974.