A clause that exempts a party from liability for failing to perform some or all of its contractual obligations is called
A) a liability exempting clause.
B) a collateral clause.
C) an exemption clause.
D) a limitation clause.
E) an exempting clause.

Question

Quizplus · Accepted Answer

An exemption clause is a clause in a contract that excuses or frees a party from liability for a failure to perform a contractual obligation. It is sometimes also referred to as an exclusion clause, release clause, or limitation of liability clause. This type of clause may limit the liability of one or both parties in a contract, depending on its terms and conditions.

A Clause That Exempts a Party from Liability for Failing