Exculpatory clause

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Contract law

Formation
Capacity Offer and acceptance Meeting of the minds² Abstraction principle^4,5 Posting rule¹ Mirror image rule Invitation to treat Firm offer Consideration^1,4 Implication-in-fact Collateral contract
Defences
Misrepresentation Mistake Threats and unequal bargaining power Illegality and public policy Unconscionability Culpa in contrahendo² Force majeure Frustration of purpose Impossibility Impracticability Hardship Set-off Illusory promise¹ Statute of frauds¹ Non est factum¹ Unclean hands¹ Accord and satisfaction¹ Exculpatory clause
Interpretation
Parol evidence³ Contract of adhesion Integration clause Contra proferentem UNIDROIT Principles
Dispute resolution
Choice of law clause Forum selection clause Hague Choice of Court Convention Arbitration New York Convention UNCITRAL Model Law Mediation Singapore Mediation Convention Enforcement of foreign judgments Hague Judgments Convention
Rights of third parties
Privity of contract¹ Assignment Delegation Novation Third-party beneficiary
Breach of contract
Anticipatory repudiation Cover Exclusion clause Efficient breach Deviation Fundamental breach
Remedies
Specific performance³ Money damages Liquidated, stipulated, or penal damages³ Rescission
Quasi-contractual obligations
Promissory estoppel¹ Quantum meruit¹ Unjust enrichment Restitution Negotiorum gestio²
Duties of parties
Duty of honest contractual performance (or doctrine of abuse of rights)⁶ Duty of good faith (also implied covenant of good faith and fair dealing or duty to negotiate in good faith)⁷ Contract A and Contract B in Canadian contract law⁶
Related areas of law
Conflict of laws Commercial law
By jurisdiction
Australia Canada China (mainland) Ireland India Saudi Arabia United Kingdom England and Wales Scotland United States
Other law areas
Tort law Property law Wills, trusts, and estates Criminal law Evidence
Notes
1 Specific to common law jurisdictions 2 Specific to civil and mixed law jurisdictions 3 Historically restricted in common law jurisdictions but generally accepted elsewhere; availability varies between contemporary common law jurisdictions 4 Specific to the German Bürgerliches Gesetzbuch and other civil codes based on the pandectist tradition 5 Explicitly rejected by the UNIDROIT Principles of International Commercial Contracts 6 Specific to Canadian contract law both in Québec and in the country's common law provinces 7 Specific to civil law jurisdictions, the American Uniform Commercial Code, and Canadian jurisprudence in both Québec and the common law provinces pertaining to contractual and pre-contractual negotiation
v t e

Within a contract, an exculpatory clause is a statement that aims to prevent one party from holding the other party liable for damages.^[1] An exculpatory clause is generally only enforceable if it does not conflict with existing public policy.^[2] The two other prerequisites for an exculpatory clause to be valid are that the contract must pertain to the involved parties' private affairs, and each of the involved parties must be free bargaining agents to the contract in question such that there is no adhesion.^[3]

Example uses

In hospitality law, exculpatory clauses are sometimes used in waivers to absolve hotels of liability regarding unstaffed swimming pools open for visitor use, aided by signs displaying language such as "swim at your own risk".^[4]
In construction law and real estate, exculpatory clauses are sometimes included in nonrecourse loans to minimize personal liability for the borrower.^[5]
Exculpatory clauses are also applied more generally in construction law to immunize a person from the consequences of his/her negligence, though this application is subject to stringent standards.^[6]
Ski resorts typically defend themselves with exculpatory clauses due to the inherent risk of injury involved with skiing, and thus it is usually very difficult for skiers to successfully win a personal injury lawsuit against the resort.^[7]
In aviation law, activities like skydiving and performing an air show are typically uninsurable due to carrying such a high level of risk; this necessitates the usage of exculpatory clauses as risk management tools, so that individuals and businesses can defend against lawsuits in the event of injury or death.^[8]
In medical law, most jurisdictions have ruled that exculpatory clauses are generally considered invalid for medical malpractice cases because health care is an important and sensitive area of public interest,^[9]^[10] though a common exception to this trend exists for experimental procedures.^[9]

Additional resources

Chart of exculpatory clause laws for all 50 U.S. states (begins on page 8; updated January 13, 2022)

References

^ "exculpatory clause". law.cornell.edu. Legal Information Institute at Cornell Law School. July 2021. Retrieved November 28, 2023.
^ Sido, Kevin R. (2006). Architect and Engineer Liability: Claims Against Design Professionals. Aspen Publishers. p. 422. ISBN 9780735561038.
^ Rapp, Geoffrey (2020). Tort Law in Focus. Wolters Kluwer. p. 405. ISBN 9781543807820.
^ Barth, Stephen C.; Hayes, David K. (2006). "Chapter 2: Hospitality Contracts". Hospitality Law: Managing Legal Issues in the Hospitality Industry. Wiley. p. 46. ISBN 9780471464259.
^ Sirota, David (2004). "Chapter 5: Financing for Real Estate Investments". Essentials of Real Estate Investment. Dearborn Real Estate Education. p. 95. ISBN 9780793143610.
^ Cameron, John G. (2000). A Practitioner's Guide to Construction Law. American Law Institute-American Bar Association Committee on Continuing Professional Education. p. 5-19 and 5-20. ISBN 9780831808037.
^ de Yoanna, Michael (March 20, 2019). "The Thousands Of Colorado Ski Injuries That Resorts Don't Tell You About". kunc.org. KUNC. Retrieved November 29, 2023.
^ Pearson, Michael W.; Riley, Daniel S. (April 15, 2016). Foundations of Aviation Law. Taylor & Francis. p. 301. ISBN 9781317133711.
^ ^a ^b Pozgar, George D. (2004). Legal Aspects of Health Care Administration. Jones and Bartlett Publishers. pp. 330–331. ISBN 9780763731823.
^ Reynolds, Jeremiah (August 25, 2005). "Make Sure Contractual Limits On Liability Are Enforceable" (PDF). Los Angeles Daily Journal. Los Angeles. Retrieved December 1, 2023.

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