# Exoneration clause

Source: https://contracko.com/glossary/exoneration-clause

# Exoneration clause

A clause that excludes or limits a party's liability for damage.

## Definition

An exoneration clause is a contractual provision by which a party excludes or limits its liability for damage, often as part of general terms and conditions. Such clauses are valid in principle but are tested against the standards of reasonableness and fairness (article 6:248 BW) and, in general terms, the unfair-terms regime of article 6:233 BW. A court can set the clause aside, particularly where the damage results from intent or gross negligence.

## Example

> A workshop's general terms exclude liability for damage to stored goods, but a court refuses to apply the clause where the damage was caused by gross negligence.

## Why this is a business risk

An exoneration clause can give a false sense of security: a court may refuse to apply it at the very moment you need it most, namely when the loss is large and caused by serious negligence. For the party accepting the clause, it may mean being left with unrecoverable losses that are not covered by insurance either, particularly for purely financial harm. Businesses that embed these clauses in general terms without proper disclosure risk them being declared void as unfair terms under article 6:233 BW.

## How to manage it

- Ensure your general terms are properly provided to the other party before or at the time of contract formation, to avoid the clause being void for lack of disclosure.
- Do not rely on an exoneration clause as a substitute for insurance: carry adequate cover for the scenarios the clause purports to exclude.
- When reviewing a counterparty's clause, check whether it covers intent and gross negligence: if it does, that protection is unlikely to be enforceable under Dutch law.
- Review exoneration clauses in your portfolio periodically: evolving case law on reasonableness and fairness can change enforceability without any change to the contract text.

### How Contracko helps

Contracko's AI review identifies exoneration clauses across your contract portfolio and flags the scope of each exclusion, including whether gross negligence or intent is covered. Storing signed contracts centrally means the version with the agreed exoneration wording is always retrievable for a dispute, rather than lost in an email archive.

## Legal references

- [BW 6:248 Dutch Civil Code: reasonableness and fairness Dutch law](https://wetten.overheid.nl/BWBR0005289)
- [BW 6:233 Dutch Civil Code: unfair general terms Dutch law](https://wetten.overheid.nl/BWBR0005289)

Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.

## Relevant for

[IT Services](https://contracko.com/industries/it-services)[Logistics & Distribution](https://contracko.com/industries/logistics)[Manufacturing](https://contracko.com/industries/manufacturing)

## Related clauses

- [Limitation of Liability Clause](https://contracko.com/clause-library/limitation-of-liability)
- [Indemnification Clause](https://contracko.com/clause-library/indemnification)

## Related terms

- [Liability limitation](https://contracko.com/glossary/liability-limitation)
- [Consequential damages](https://contracko.com/glossary/consequential-damages)
- [General terms and conditions](https://contracko.com/glossary/general-terms-and-conditions)
- [Liability](https://contracko.com/glossary/liability)

### Never miss a contract deadline again

- AI finds renewal and notice dates
- Risks and obligations are surfaced automatically
- Reminders help you act before dates slip

Drop a contract to start

PDF, DOCX, PNG, or JPG

[Start 7-day trial](https://app.contracko.com/register?appLanguage=en&utm_source=glossary_sidebar&utm_medium=lead_magnet&utm_campaign=glossary_sidebar_contract_upload&content_slug=exoneration-clause&content_title=Exoneration+clause&cta_placement=glossary_sidebar_cta&source_tool=glossary_sidebar_exoneration-clause)

GDPR compliant. Encrypted. Never used for AI training.

## Frequently asked questions

Common questions about this term.

- **Q:** Can an exoneration clause cover intent and gross negligence?
  **A:** In the Netherlands, a court will typically refuse to apply an exoneration clause to damage caused by intent or gross negligence (bewuste roekeloosheid) on the grounds that doing so would be unacceptable under the standards of reasonableness and fairness.

- **Q:** What makes an exoneration clause void against a consumer?
  **A:** Under article 6:233 BW, an unreasonably onerous clause in general terms can be annulled by the consumer. The "grey list" of article 6:237 BW presumes certain clauses onerous unless the supplier can show otherwise, including broad liability exclusions.

- **Q:** Does an exoneration clause need to be brought to the attention of the other party?
  **A:** Yes. Under article 6:234 BW, general terms must be provided to the other party before or at contract formation. Failure to do so entitles the other party to annul the relevant clause, including any exoneration provision.

- **Q:** How does an exoneration clause interact with mandatory statutory liability?
  **A:** Exoneration clauses cannot override liability that is imposed by mandatory law. For example, product liability under the Product Liability Act (Productaansprakelijkheid) cannot be excluded by contract for personal injury and death.

- **Q:** Is an exoneration clause in a B2B contract subject to the same controls as in a consumer contract?
  **A:** The unfair-terms grey and black lists apply automatically only to consumer contracts. Between businesses, the clause is tested against the open standard of reasonableness and fairness under article 6:248 BW, which gives courts more discretion but less automatic protection for the receiving party.

## See these terms in your own contracts

Upload a contract and Contracko pulls out the key terms, dates and obligations, then reminds you before each one matters.

[Start 7-day free trial](https://app.contracko.com/register?appLanguage=en)

Book demo