What is an exculpatory clause?

An exculpatory clause is a provision in a contract that frees one party of liability should the other party suffer any damages. When an exculpatory clause is included in a contract, it generally means that the second party will not be held legally responsible for any damages that result from the actions of either party. In Texas, these clauses must be very narrowly tailored to be enforceable. To do so, all the details of the clause must be laid out in a manner that is easily understood by the parties involved. Additionally, the parties must agree to the clause in writing. Texas courts will only enforce an exculpatory clause if it serves the purpose of protecting the parties from unusual risks. If an exculpatory clause does not meet these requirements, it may be found to be void and unenforceable.

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