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Of course the mere fact that a contract term is not read or understood by the nondrafting party or that the drafting party occupies a superior bargaining position will not authorize a court to refuse to enforce the contract.The party seeking exculpation is engaged in performing a service of great importance to the public, which is often a matter of practical necessity for some members of the public.The party holds himself out as willing to perform this service for any member of the public who seeks it, or at least for any member coming within certain established standards. we have not found any case addressing a limitation on liability for intentional wrongs, gross negligence or violations of the law”) (emphasis in original).An exculpatory clause is a provision that relieves one party of liability altogether for the specified damages.Below is a summary of the law in California with respect to some common subjects of exculpatory clauses and limitations of liability.§ 1668 (“All contracts which have for their object, directly or indirectly, to exempt any one from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law”); , 113 Cal.
In commercial contracts, California permits the use of exculpatory clauses and limitations of liability with some exceptions.
A limitation of liability clause permits contracting parties to reduce or eliminate the potential for direct, consequential, special, incidental and indirect damages for breaches of or claims under the contract.