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Contracts & Legal

Exculpatory Clause

In Plain English

A contract clause that tries to protect one party from being held responsible for their own mistakes.

Definition

An exculpatory clause is a contract provision that attempts to relieve one party from liability for their own negligence or wrongful acts. In construction contracts, they are commonly used by owners to limit liability for design errors or site condition risks. Courts scrutinize exculpatory clauses closely and will not enforce them if they are unconscionable or against public policy.

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