What are "exculpatory clauses" intended to do?

Exculpatory clauses are provisions in a contract that are specifically designed to limit or eliminate liability for certain acts or omissions of one or more parties involved in the contract. These clauses allow a party to avoid liability for negligence or other wrongful acts, typically in situations where one party might otherwise be held responsible for damages or injuries that occur as a result of their actions or failures to act.

By incorporating an exculpatory clause into a contract, a party seeks to protect itself from claims that could arise from its conduct, allowing it to mitigate risks associated with potential legal exposure. This is particularly common in contracts for activities that carry inherent risks, such as recreational services or construction agreements.

The intent behind these clauses is often to allocate risk between the parties in a manner that they mutually agree upon, enabling them to proceed with the contractual relationship while establishing boundaries around what liabilities one party is willing to accept.