First Principles of Business Law

4. Terms that exclude or limit liability

4.2. The enforceability of terms that exclude liability

Read the facts and the question and then choose the best answer.

A, a singer, says: 'I will give one performance each night at ten of your shows in July for a fee of $5,000. But I'm not to be legally liable in any way if I miss one or two performances, whatever the reason.' B, a promoter says: 'I'll pay you $5,000 to perform at ten shows, and I agree not to hold you legally liable if you fail to turn up for one or two of the performances.'

Does this agreement effectively exclude A's legal liability if she misses one or two performances?

(a) Yes, it is possible to exclude liability by agreement in this way.

 (b) No, the courts will not enforce terms that exclude contractual liability.