Partnership Glossary

exemption clauses

Clauses in an agreement that try to restrict the liability of the party that writes them are split into: exclusion clauses that try to exclude liability completely for specified outcomes, and limitation clauses that set a maximum on the amount of damages the party may have to pay if there is a failure of some part of the agreement. Exemption clauses are regulated very strictly in consumer dealings, but these don't apply for those who deal in the course of their business.