The Legal Nature of Exemption Clauses

Rūta Lazauskaitė


The objective of this article is to examine the legal nature of exemption clauses, analyse their relationship to other similar provisions that regulate contractual liability, present classification of exemption clauses and highlight their drafting features. Although contractual terms limiting a party’s liability are common in commercial contracts, in Lithuania they have only been analysed as a type of unfair clauses in consumer contracts. The article states that exclusion and limitation clauses are contractual provisions that aim to exclude or limit contractual liability of the appropriate party in advance, i.e. before such liability occurs. The possibility to incorporate an exemption clause into a contract is derived from the principle of freedom of contract, the non-mandatory nature of civil law provisions and the creditor’s subjective right to void of any of his rights.


civil law; principle of freedom of contracts; contractual liability; limitation of liability; exclusion of liability; agreement between the parties

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"Societal studies" ISSN online 2029-2244 / ISSN print 2029-2236