Question

29. EXCULPATORY CLAUSES IN BAILEES’ CONTRACTS ARE USUALLY HELD TO BE: (A) ILLEGAL, IF THE COURT...

29. EXCULPATORY CLAUSES IN BAILEES’ CONTRACTS ARE USUALLY HELD TO BE:

(A) ILLEGAL, IF THE COURT FEELS THAT THEY WERE NOT PROPERLY COMMUNICATED TO THE BAILOR

(B) ILLEGAL – EVEN IF THEY ARE PROPERLY COMMUNICATED TO THE BAILOR – IF THEIR TERMS PURPORT TO FREE THE BAILEE FROM LIABILITY ARISING OUT OF THE BAILEE’S NEGLIGENCE

(C) LEGAL, IF PROPERLY COMMUNICATED TO THE BAILOR (EVEN IF THEY PURPORT TO FREE THE BAILEE FROM LIABILITY ARISING OUT OF THE BAILEE’S NEGLIGENCE)

(D) A AND C

Homework Answers

Answer #1

Exculpatory contracts are those contracts which relieves one of the party from the suffering of losses on aacount of damages occured during the contract period. There is always a issue to determine the legality of such clauses in a contract.

The courts have complete discretion to determine the legality of such contracts. Hence, these contracts may be turned illegal if court feels that they are not properly communicated to the bailor.

When these terms or clauses are properly communicated to the bailor, these are always legal.

Hence, the answer is Option D- A and C.

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