Discussion about exculpatory clause and deny liability


Problem: Mega Corporation, the bailor, negotiates a bailment agreement with Huge Corporation, the bailee. Huge Corporation insists that an exculpatory clause be included in the terms and conditions of the bailment agreement. Later, Huge Corporation negligently (ordinary negligence, not gross negligence) damages the property that is the subject of the bailment. Most courts will allow Huge Corp. to stand behind its exculpatory clause and deny liability.

a. True

b. False

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Other Subject: Discussion about exculpatory clause and deny liability
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