Business Law: Exemption Clause

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1. An exemption is a clause in a contract that exempts or removes liability from one or both parties in certain circumstances. Exemption clauses are used frequently in business organization contract. These clauses apportion risk between the parties concerned and the law upholds them, assuming the parties negotiated them while drafting the contract 2. The two ways in which exemption clauses can be incorporated in a contract are: (1) Incorporation by notice and (2) Incorporation by signature. 3. I would first ask X if he was notified of the hotel’s policy while, he was checking in. If He was informed of a policy to secure valuables at the front desk, then he was responsible for his losses and Y had no obligation to reimburse him for…show more content…
Rescission can be lost where the subject matter of the contract cannot be restored to the representor, and where a third party has gained an interest in the goods. 4. Onus – Burden of proof 5. Contra Proferentem rule – States that any doubt or ambiguity in the wording of a clause will be construed against the person seeking to rely on

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