Contracts

In Montana, a release of liability (hold harmless agreement) in a real estate contract:

AAlways eliminates all potential liability between parties
BMay protect a party from claims arising from specific disclosed risks but may not be enforceable for fraud or gross negligence✓ Correct
CIs not recognized under Montana law
DMust be filed with the district court to be effective

Explanation

Hold harmless and liability release provisions in Montana contracts can protect parties from claims arising from disclosed, known risks that the releasing party voluntarily accepts. However, such clauses are generally not enforceable against fraud, willful misconduct, or gross negligence.

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