Definition of Exculpatory clause:
A provision in a contract under which either of two things is stipulated: (1) one party is relieved of any blame or liability arising from the other partys wrongdoing, or (2) one party (usually the one that drafted the agreement) is freed of all liability arising out of performance of that contract.
An example of an exculpatory clause is a dry cleaners receipt that includes a disclaimer freeing him or her from any liability for damage to the item to be cleaned during the dry cleaning process. An exculpatory clause may be overruled by courts if found to be unreasonable in the circumstances. See also exclusion clause, exemption clause, and indemnity clause.
An exculpatory clause is a contract provision that relieves one party of liability if damages are caused during the execution of the contract. The party that issues the exculpatory clause is typically the one seeking to be relieved of the potential liability. For example, a venue may print an exculpatory clause on tickets it sells for a concert, indicating that it is not responsible for personal injury caused by employees or others during the show.
While exculpatory clauses are typically upheld, they can be challenged and overturned in court. The court can determine that the clause is unreasonable if both parties in the contract do not have equal bargaining power or if the clause eliminates liability for negligence.
How to use Exculpatory clause in a sentence?
- Stephen wanted to sue the valet parking company for the damage to his car, but the ticket he had been given contained an exculpatory clause which seemed to relieve them of all liability.
- I figured out the exculpatory clause and I was really happy to find out that they would be relieved of any blame.
- Due to the exculpatory clause in his contract, Rich was able to stipulate that he was not liable for any or all damage to his office furniture while he worked at Anger Management, Incorporated.
Meaning of Exculpatory clause & Exculpatory clause Definition