The Legal Nature of Exemption Clauses

• Published in: Socialiniu Mokslu Studijos Vol. 1; no. 5
• Main Author: Lazauskaite, Ruta
• Format: Journal Article
• Language: English; Lithuanian
• Published: Vilnius Mykolas Romeris University 01.01.2010
• ISSN: 2029-2236; 2029-2244

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.