Also found in: Dictionary
exemption clause a term in a contract that seeks to exempt or excuse a party from his liability either under the contract to be performed or some other obligation. The clause must truly be part of the contract, and the court will, in the absence of clear acceptance, ask whether it was reasonable to say that it has been included providing a control of sorts over clause included on tickets by reference. It must be in words that could encompass the liability sought to be included. If the interpretation is ambiguous, it will be construed under reference to the CONTRA PROFERENTEM RULE. Such clauses are now regulated by the law on UNFAIR CONTRACT TERMS.