Asked by Nicole Nothstine on May 02, 2024
Verified
An exculpatory clause in a contract for the sale of a business will be enforced if it is reasonable in time and geographical area.
Exculpatory Clause
A clause in a contract that releases a party from liability for his or her wrongful acts. These clauses are not favored by law.
Geographical Area
Refers to a specific physical region or location defined by natural or artificial borders.
- Understand the legal validity of exculpatory clauses and noncompete agreements, along with their constraints.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
False
Explanation :
An exculpatory clause is designed to absolve one party from liability for their own negligence or wrongdoing, not to impose restrictions on time and geographical area, which are characteristics of a non-compete clause.
Learning Objectives
- Understand the legal validity of exculpatory clauses and noncompete agreements, along with their constraints.