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Philip Has Been in Training for Several Months and Now

question 52

Essay

Philip has been in training for several months and now plans to run in the school-sponsored, 10-mile, fun-run mini-marathon. He completes and signs an entry blank which contains the statement, "I hereby agree to hold the sponsors harmless for any injury sustained as a result of participation in this event no matter how such injury may be caused."
a. What is the legal term for this clause in the agreement?
b. Is the clause valid and legally enforceable? Explain its legal effect.


Definitions:

Gross Investment

The total amount of money spent on capital assets before accounting for depreciation.

Net Investment

The amount spent by a company on new capital assets after accounting for depreciation.

Foreign Investments

Investments made by individuals, companies, or governments in assets or business ventures in another country.

Interest Rates

The cost of borrowing money expressed as a percentage of the principal, or the return on investment.

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