Tunkl v. Regents of Univ. of Cal., 60 Cal. 2d 92, 383 P.2d 441, 32 Cal. Rptr. 33 (Cal. 1963)
Tunkl v. Regents of University of California is a foundational contracts case on the enforceability of exculpatory clauses that purport to release a party from liability for future negligence.
Is a hospital admissions exculpatory clause releasing the hospital and its staff from liability for future negligence enforceable, or is it void as contrary to public policy because the transaction affects the public interest under California Civil Code § 1668?
Under California Civil Code § 1668 and California public policy, an agreement exempting a party from responsibility for future negligence is unenforceable when it affects the public interest. Whether a transaction affects the public interest is assessed using the six Tunkl factors. A contract that implicates the public interest, and thus renders an exculpatory clause void, typically involves: (1) a business suitable for public regulation; (2) a service of great importance to the public, often a practical necessity; (3) an offer to serve any member of the public who seeks it (or who meets established standards); (4) a decisive disparity in bargaining strength enabling the service provider to dictate terms; (5) presentation of a standardized adhesion contract with no option to pay more for protection against negligence; and (6) the purchaser's person or property is placed under the seller's control, subject to the risk of the seller's carelessness.
The hospital admissions exculpatory clause is void as against public policy because hospital services implicate the public interest under § 1668 and the six-factor test. The judgment enforcing the release was reversed.
Tunkl is the canonical case defining the "public interest" limitation on exculpatory clauses and remains a staple in contracts and torts courses. Its six-factor test is cited across jurisdictions to distinguish permissible risk allocation in private, voluntary activities from impermissible waivers in essential, regulated services marked by adhesion and unequal bargaining power. The case informs analysis of healthcare releases, utilities and common carriers, residential leases, and other settings where public policy restricts contract terms. It also bridges doctrines of adhesion, unconscionability, and tort deterrence, illustrating how courts balance freedom of contract against societal interests in safety and access.