Release of Liability
Exculpatory clauses are found in a variety of contracts and work to relieve one party from liability based on negligence. The Tennessee Supreme Court recently held that not all exculpatory clauses are enforceable. Generally, Tennessee law has favored parties’ ability to contract freely. However, at times, that collides with public policy and societal expectations. In Olson v. Molzen, a 1977 decision, the Tennessee Supreme Court held that “subject to certain exceptions, parties may contract that one shall not be liable for his negligence to another.” One of those exceptions was certain professional relationships, such as those with doctors or lawyers. Those