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exculpatory clause

An exculpatory clause is a provision in a contract  that releases or limits one party’s liability for certain damages . These clauses are commonly found in consumer contracts, such as amusement park waivers, gym memberships, rental agreements, or transportation tickets.

Courts scrutinize exculpatory clauses because they may allow a party to avoid responsibility for negligence or wrongful conduct. A court may refuse to enforce an exculpatory clause if, for example, the clause is overly broad , violates public policy, is not clearly disclosed to the agreeing party, or attempts to waive liability for gross negligence or intentional misconduct .

[Last reviewed in November of 2025 by the Wex Definitions Team
] 

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