Metro City Mall requires its tenants to sign a lease that includes a clause releasing Metro from liability in the event of monetary or physical injury no matter who is at fault. Coco's Chocolate Creations signs a lease with the mall that contains the clause. This is
A) a covenant not to compete.
B) an adhesion contract.
C) an exculpatory clause.
D) an illusory promise.

Question

Metro City Mall requires its tenants to sign a lease that includes a clause releasing Metro from liability in the event of monetary or physical injury no matter who is at fault. Coco's Chocolate Creations signs a lease with the mall that contains the clause. This is
A) ​a covenant not to compete.
B) ​an adhesion contract.
C) ​an exculpatory clause.
D) ​an illusory promise.

Quizplus · Accepted Answer

This is an exculpatory clause, which attempts to release one party (Metro City Mall) from liability in the event of injury or damages, regardless of fault. Such clauses are often found in adhesion contracts, which are contracts where one party has significantly more bargaining power than the other and little opportunity to negotiate the terms of the contract.

Metro City Mall Requires Its Tenants to Sign a Lease