Fact Pattern 14-B1 (Questions B14-B15 apply)
Bay 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 Bay City that contains the clause.
-Refer to Fact pattern 14-B1.This clause is
A)a covenant not to compete.
B)an adhesion contract.
C)an exculpatory clause.
D)an illusory promise.

Question

Quizplus · Accepted Answer

The clause releasing Metro from liability in the event of monetary or physical injury regardless of fault is an exculpatory clause. An exculpatory clause is a provision in a contract that relieves one party from liability for damages regardless of who is at fault. Such clauses are generally disfavored by the courts and may be unenforceable if found to be unconscionable or against public policy.

Fact Pattern 14-B1 (Questions B14-B15 Apply)