Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Course Subjects
  • Our Team
  • Home
  • Law, Transactions, & Risk Management
  • Commercial Law: Contract, Payments, Security Interests, & Bankruptcy

Exculpatory Clause - Explained

What is a Exculpatory Clause?

Written by Jason Gordon

Updated at April 5th, 2023

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

What is an Exculpatory Clause?

An exculpatory clause is a provision in a contract relieves a party from liability resulting from the execution of a contract. That is, it is used to relieve a party to a contract from liability for errors that occur during a project draw. It is commonly used to protect one party from blamed for damage caused by that party's workers or subcontractors during the execution of a project. 

An exculpatory clause often favors that drawer of the clause or the person that drafted an agreement. A good example is a laundryman drafting an exculpatory clause which relieves him of liability resulting from damages caused by the washing machine or iron during the laundry process.

Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY

Related Topics

  • Contract Law (Intro)
  • What is a Contract?
  • Contract Theory Definition
  • Meeting of the Minds
  • Doctrine of Utmost Good Faith 
  • Aleatory Contract Definition
  • What are the sources of contract law?
  • Restatement of Contracts
  • Uniform Commercial Code
  • Convention on Contracts for the International Sale of Goods (CISG) 
  • What is a Unilateral Contract vs a Bilateral Contract?
  • What is an Express Contract vs an Implied Contract?
  • What are the requirements to form a Contract (Offer, Acceptance, Consideration)?
  • What is an Enforceable Contract vs. a Valid Contract?
  • What is a Void Contract vs a Voidable Contract?
  • Adhesion Contract 
  • What is Mental Capacity to contract?
  • What is the requirement of a Lawful Purpose?
  • What are common types of Voidable Contract?
  • What is an Offer?
  • Sum Certain (Contracts) Definition
  • When does an offer to contact terminate?
  • Counterparty Definition
  • Mirror Image Rule?
  • Rule for Sale of Goods
  • Silence is Not Acceptance?
  • Mailbox Rule
  • Shrink-wrap Agreement Definition
  • Click-Wrap Agreement Definition
  • What is Consideration?
  • What is Promissory Estoppel?
  • When is a contract required to be in writing Statute of Frauds?
  • What type of writing satisfies the statute of frauds?
  • Exceptions to the Statute of Fraud
  • Documents Under Seal
  • Who Can Sign Contracts on Behalf of a Company?
  • E-Sign Act
  • Privity of Contract
  • Who are third-party beneficiaries to a contract?
  • What is assignment and delegation of a contract?
  • When is a party's Duty of performance?
  • Aleatory Contract
  • What is an Executed contract vs an Executory contract?
  • Inchoate Definition
  • Evergreen Contract
  • What is Performance, Substantial Performance, and Breach of a contract?
  • What is performance of a Divisible Contract?
  • When is a party's duty of performance discharged?
  • What are conditions to Contract (Precedent & Subsequent)?
  • Abandonment Option (Contract) Definition
  • Cooling Off Rule Definition
  • What is tender performance of a contract?
  • What are Impossibility and Impracticability
  • What is a Frustration of Purpose?
  • Waiver or Release from Contract
  • Accord and Satisfaction
  • Force Majeure Clause
  • Novation
  • What is a Breach of Contract?
  • Repudiation (Contract) Definition
  • Anticipatory Repudiation
  • Acceleration Clause (Contracts) Definition
  • What methods exist for resolving a breach?
  • Assumpsit
  • What remedies exist for a breach of contract?
  • Rescission (Contract)
  • Exculpatory Clause
  • Hold Harmless Clause
  • What is Efficient Breach?
  • Organization of a Contract
  • How to Read the Contract
  • Boilerplate
  • Contract Representations & Warranties
  • Contract Covenants
  • What rules does a court follow in interpreting a contract?
  • Addendum 
  • Allonge Definition
  • What is the Parol Evidence Rule?
  • What is a complete integration vs a partial integration?
  • Exceptions to the Parol Evidence Rule
  • Patent and Latent Ambiguity in a Contract
  • Service Level Agreement Definition 
  • Offtake Agreement
exculpatory clause explained

Was this article helpful?

Yes
No

Related Articles

  • Priority of Consumers Purchasing from Consumers
  • Red Herring (Securities) - Explained
  • Addendum (Contract) - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions
  • Course Material

Definition by Author

0
0
Expand