Which term refers to a clause that allows a party to limit liability?

The correct choice is the exclusion clause, which specifically refers to a provision in a contract that limits or entirely excludes one party's liability in the event of certain occurrences or failures. This type of clause is often utilized in agreements to protect against claims for damages or losses that may arise from the performance or non-performance of contractual obligations.

Exclusion clauses are important in risk management and can cover various situations, such as negligence or breach of contract, thereby providing a level of security for the party seeking limitation of liability. It is crucial for such clauses to be clearly stated and, in some jurisdictions, must meet certain legal standards to be enforceable.

In contrast, conditions precedent relate to specific conditions that must be fulfilled before a contractual obligation kicks in. Mitigation clauses refer to obligations to minimize damages. Warranty clauses provide guarantees regarding a product or service's standards and do not inherently limit liability. Overall, understanding exclusion clauses and their application is vital in art law as they shape the management of risk in transactions and agreements.