Which of the following can be characterized as an exculpatory clause?
A)Contractor is not liable for damage caused by its employees.
B)Buyer agrees to pay $5,000 for a used cell phone.
C)Creditor charges 45% interest on a loan.
D)All of these are correct.

Question

Quizplus · Accepted Answer

An exculpatory clause is a provision in a contract that attempts to release one party from liability in the event of damages, injury, or losses suffered by the other party. Choice A fits this definition by stating that the contractor is not liable for damage caused by its employees. Choices B and C do not involve attempts to release one party from liability.

Which of the Following Can Be Characterized as an Exculpatory