Joe's Barbecue negotiated a lease for space in a strip mall with Diamond Enterprises, the owner of the strip mall. During negotiations for the lease, the agent for Diamond told Joe that the crime rate in the area was very low and that the strip mall had not experienced any criminal activity. The agent also told Joe that the strip mall had surveillance cameras that were not readily visible, but that were running 24 hours per day.
Two months after Joe opened for business, assailants entered his restaurant, robbed his customers, and shot Joe. Joe filed suit against Diamond because he learned that there were no surveillance cameras and that two other stores in the shopping center had experienced similar incidents. Diamond has an exculpatory clause in its lease that reads:
shareholders, directors, officers, agents, employees, and staff of Diamond shall not be held liable for any damage or loss of property or injury from any cause whatsoever, including, but not limited to, fire, theft . . .
-The exculpatory clause in the lease is:

Question

Quizplus · Accepted Answer

An exculpatory clause is a provision in a contract that releases one party from liability for negligence. In this case, the exculpatory clause in the lease releases Diamond from liability for any damage or loss of property or injury from any cause whatsoever. This includes the robbery and shooting that occurred at Joe's Barbecue. The exculpatory clause is enforceable because it is clear and unambiguous, and it was negotiated at arm's length between the parties.

Joe's Barbecue Negotiated a Lease for Space in a Strip