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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