Question

Metro City Mall requires its tenants to sign a lease that includes a clause releasing Metro from liability in the event of monetary or physical injury no matter who is at fault. Coco’s Chocolate Creations signs a lease with the mall that contains the clause.
The clause is most likely:

a. enforceable as a matter of public policy
b. enforceable if either party is considered to be a business for essential services
c. enforceable if the lease also involves residential property
d. unenforceable

Answer 1

Answer:

D) unenforceable

Explanation:

This type of clause is an exculpatory clause since it tries to relieve Metro City Mall from any possible damages that occur during the lease time.

In order for an exculpatory clause to be enforceable, it must be reasonable. The fact that Metro City Mall wants to be released from liability no matter who is at fault, makes the clause unreasonable.