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Exclusionary Clause

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A term in a sales contract that limits the remedies available to one or both parties to it in an action for breach of Warranty, statements made as to the quality of the goods sold. A provision of an insurance contract that prohibits recovery pursuant to its terms if certain designated circumstances occur.

The exclusionary clause contains the exceptions to insurance coverage upon which the insurer and insured have agreed prior to the execution of the policy.



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For example, courts have held that alcohol or drug use can impair the user's judgment to the point that he or she could not have acted intentionally; therefore, the exclusionary clause does not apply.
There is a rarely acknowledged truth in this case: These sometimes harsh exclusionary clauses protect the public in very significant ways.
The organization announced that it has removed the locale exclusionary clause from its constitution and will be a national agricultural equipment manufacturers association.
 
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