Exculpatory provisions: Which is allowed?

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Multiple Choice

Exculpatory provisions: Which is allowed?

Explanation:
Exculpatory provisions are clauses that attempt to relieve someone from liability for negligence or breach of fiduciary duty. In New York, such clauses in a testamentary document (a will) are void as against public policy because they would let a fiduciary escape accountability for mismanagement after death. By contrast, exculpatory provisions in inter vivos arrangements (contracts made during a person’s lifetime) are generally enforceable, reflecting the parties’ freedom to allocate risk and limit liability, provided they don’t run afoul of other rules (like fraud or unconscionability). So the allowed scenario is inter vivos exculpation, while testamentary exculpation is not.

Exculpatory provisions are clauses that attempt to relieve someone from liability for negligence or breach of fiduciary duty. In New York, such clauses in a testamentary document (a will) are void as against public policy because they would let a fiduciary escape accountability for mismanagement after death. By contrast, exculpatory provisions in inter vivos arrangements (contracts made during a person’s lifetime) are generally enforceable, reflecting the parties’ freedom to allocate risk and limit liability, provided they don’t run afoul of other rules (like fraud or unconscionability). So the allowed scenario is inter vivos exculpation, while testamentary exculpation is not.

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