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Business Law: Exemption Clause

Decent Essays

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 …show more content…

6. Misrepresentation is: A statement of fact made by one party to contract (the representor) to the other (the representee) which, while not forming a term of the contract, is one of the reasons that induces the representee to enter into the contract. 7. In a misrepresentation case, for the courts to make its decision, it generally looks for the following two things in the representor’s statement: (1) Statement of fact and (2) Inducement. 8. In a case of Tim v Roy - T Company build concrete houses with plycemet backing instead of blocks. The marketing department of the company, market the houses as fully concrete. R purchase one of the houses from T Company at the cost you would pay for a fully concrete house. After living in the house for a month R found out that the house was not fully concrete. The plaintiff sued on grounds that he bought the house from the company because he thought the company was building fully concrete houses and he was deceived when they did not. In this case the information given by the Marketing department was of a fraudulent one therefore it was a fraudulent misrepresentation. When proving a fraudulent misrepresentation the plaintiff have to prove that the representor acted in a fraudulent manner or that they made the statement knowingly or without belief it was true or recklessly. All of the above was proven. Tanya’s Boutique v. Andréa Collins – In this case, Tanya gave wrong information concerning

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