What is an exculpatory clause?

An exculpatory clause is a type of legal clause that is used in a contract to limit a party’s liability. It is also known as a “hold harmless” clause or a “release of liability” clause. An exculpatory clause typically specifies that one party will not be held responsible for the actions or negligence of the other party. In many cases, an exculpatory clause is used when one party will be performing a service for the other party and does not want to be liable for any losses or damages that may result from the performance of the service. In North Carolina, courts have generally held that exculpatory clauses are valid and enforceable, as long as the clause is not against public policy. However, there are some exceptions to this rule, such as when the clause is too broad or when it involves certain types of activities, such as the provision of medical services or the sale of food or drugs. When used properly, an exculpatory clause can be a powerful legal tool for limiting the liability of the parties involved in a contract. It is important for parties to carefully consider the language of the clause, as well as any potential exceptions, before signing a contract with an exculpatory clause.

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What is an exculpatory clause?

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