A(n)_____ refers to a part of a contract in which a party to the contract states that he or she will not be responsible for certain actions.
A) noncompete clause
B) exculpatory clause
C) hold harmless clause
D) power of sale clause

Question

Quizplus · Accepted Answer

An exculpatory clause is a provision in a contract that relieves one party from liability for damages caused by their actions or negligence. It is also known as a release of liability or waiver of liability clause. Noncompete clauses restrict one party from competing against the other, hold harmless clauses require one party to assume liability for another, and power of sale clauses allow the lender to sell collateral if the borrower defaults on a loan.

A(n)_____ Refers to a Part of a Contract in Which