Contracts

In Montana, an 'exculpatory clause' in a commercial lease that releases the landlord from liability for negligence is:

AAlways fully enforceable in Montana
BGenerally disfavored but may be enforceable between sophisticated commercial parties, subject to public policy limitations✓ Correct
CProhibited under the Montana Residential Landlord and Tenant Act
DOnly enforceable for residential leases, not commercial

Explanation

Exculpatory (indemnification) clauses in commercial leases that release landlords from their own negligence are generally disfavored by courts but may be enforceable between sophisticated commercial parties. They cannot waive liability for willful misconduct or gross negligence.

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