What Is an Exculpatory Agreement?
An exculpatory agreement, sometimes referred to as an exculpatory clause, is a waiver or release within a document that limits or releases a business or individual from liability. The purpose of the exculpatory agreement is to prevent the business or individual from being sued.
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Exculpatory Agreements and Leases
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A lease between a landlord and tenant often contains an exculpatory agreement that releases the landlord from responsibility for any damages or losses that occur on the property. These clauses are usually viewed as standard to a lease agreement.
Trust Agreements
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Trust agreements contain clauses that release the trustee from liability should their actions result in negative consequences to the trust. The exculpatory agreement usually mentions that the trustee acts in good faith when executing decisions for the trust, meaning that they intend no harm.
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Common Exculpatory Agreements
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Consumers sometimes unknowingly participate in services that contain exculpatory agreements. This includes restaurant coat checks, parking lot agreements and dry cleaning services. In each case the business claims no responsibility to the consumer for loss or damage of goods.
Enforceability
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Exculpatory agreements are enforceable if the agreements meet certain standards. The agreement must be written in clear, concise language and must be prominently displayed within the contract. State laws vary, but in most cases the agreement must be signed.
Writing Exculpatory Agreements
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Consult with an attorney within your state to draft a properly worded exculpatory agreement. The release language must be specific to state laws.
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