What is an exculpatory clause?

An exculpatory clause is a legal term used in contract law. It is a clause in a contract that exempts one party from liability for acts that would otherwise be considered a breach of contract. In other words, an exculpatory clause is a provision in a contract that provides one party with an exemption from liability for any wrong or harm done to the other party. Some examples of exculpatory clauses in contracts are clauses that limit or waive a party’s duty to act in good faith or act reasonably, clauses that allow a party to terminate the contract without notice, and clauses that limit a party’s liability if the other party fails to perform their obligations under the contract. In Nebraska, there are specific requirements that must be met in order for an exculpatory clause to be valid. The clause must be stated explicitly in the contract, and it must be clear and unambiguous in its meaning. The party benefiting from the clause must not have a gross disparity of bargaining power, and must not be under any kind of duress. It must also not be contrary to public policy. In summary, an exculpatory clause is a provision in a contract that limits or waives a party’s liability for any wrong or harm done to the other party. In Nebraska, the clause must meet certain requirements for it to be considered valid and enforceable.

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