Question

The contract Jack is signing has a clause that protects his assets from a deficiency judgment in case of foreclosure. What is this called?

Answer 1

exculpatory clause

Step-by-step explanation:

Exculpatory clause in contracts is a clause that protects the person issuing it from liabilities of damages to an asset that may not be in their possession or out of their control. It prevents one party from the holding the other liable for damages to an asset during the execution of a contract. This is what Jack has done to protect himself from the liabilities that may result from any damages during the contract.