Which of the following statements is true of exculpatory clauses?
A) Exculpatory clauses are always illegal and cannot be taken up in court.
B) Exculpatory clauses, when enforced, can effectively relieve a party of liability for the consequences of his own negligence.
C) Exculpatory clauses are effective only when the party which benefits by the clause owes a duty to the public.
D) Exculpatory clauses that seek to avoid liability for willful misconduct or fraud, however, are generally enforceable.

Question

Quizplus · Accepted Answer

An exculpatory clause is a provision in a contract that attempts to relieve one party to the contract from liability for the consequences of his or her own negligence. Public policy generally favors holding people responsible for their own behavior. On the other hand, if no duty to the public is involved and the parties have freely and knowingly agreed, the exculpatory clause may be enforceable.

Which of the Following Statements Is True of Exculpatory Clauses