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Contract Glossary

Exculpatory Clause

Definition

A contract provision that releases one party from liability for harm or damages, even if that party was at fault. You've signed these at gyms, ski resorts, and adventure parks, the 'we're not responsible if you get hurt' language.

In Practice

If you're running a business with physical risk, a gym, a construction site, an outdoor adventure company, an exculpatory clause is standard. But don't rely on it completely. Courts throw these out when they're too broad, hidden in fine print, or involve gross negligence. A well-drafted clause protects against ordinary accidents, not reckless behavior.

Frequently asked questions

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This content is for informational purposes only and does not constitute legal advice.