• LinkedIn Social Icon
  • Facebook Social Icon
  • Twitter Social Icon
  • alignable_square
  • Yelp Social Icon
  • avvo
  • Justia-Icon
  • lawyer_com favicon
  • taxbuzz
  • ptin-seal
  • 170927-usnsquarelogo-design
  • favicon-32x32
  • mail icon

Law Office of James D. Lynch, PLLC

3000 Joe Dimaggio Blvd #90, Round Rock, TX 78665

info@jimlynchlaw.com

(512) 745-6347

(714) 745-3875

©2020 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.

  • James D. Lynch

Contract tip – The Exculpatory Clause

An exculpatory clause is a provision in a contract that grants one party relief from liability if there are any damages caused during a performance of a contract. For example, a lease might contain a clause saying the landlord will not be liable for damage or injury that occurs on the property.


In general, exculpatory clauses are enforceable when the party is disclaiming liability for negligence. However, a party can NOT disclaim liability for intentional acts or reckless behavior.


Courts will also look at various other factors when determining whether to enforce the contract’s exculpatory clause. For example, is it reasonable? Is it understandable? Is it conspicuously stated in the contract, or is it hidden away in the fine print? Is there a disparity of bargaining power between the parties? States may also have laws imposing additional requirements for valid exculpatory clauses.