What is an exculpatory clause?

An exculpatory clause is a term in a contract that states that one or both parties are not responsible for any damages or harm that may be caused by their negligence. This type of clause is most commonly used when a party is signing a contract that has some risks to it. In the state of Florida, when an exculpatory clause is included in a contract, it is interpreted as a waiver of liability for both parties. This means that if something goes wrong due to the negligence of either party, the other party is not able to seek legal action for damages. The use of exculpatory clauses is a way for parties to protect themselves from liability. They must be carefully considered as they can limit the rights of a party or limit the amount of damages that can be sought. Ultimately, the decision to include an exculpatory clause should be made with caution and only if it best serves the interests of both parties.

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