Contract Law Enforces The Right Of Contractual Freedom

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Contract law enforces the right to contractual freedom. Although, when one party has a stronger position in the commercial market, he may take advantage of his position and contract away from fair legal rules . Incorporation of terms The common law finds that, in the absence of misrepresentation, when parties are signing an agreement it follows that they agree to the terms included . In L’estrange v Graucob (1934), Scrutton LJ stated that the general principle of incorporation of terms is that a party should have been reasonably aware of the exclusion clause at the time of the contract . Moreover, if the contract has been signed, the judge will hold the clause to be bound . In J.R Spencer’s opinion, Mrs.L’Estrange might have denied to sign the contract if the terms had been clear and recognisable . Nevertheless, Curtis v Chemical Cleaning and Dyeing Co Ltd provides the contrary when an oral statement overrides the signed contract . Without the incorporation of a clause, liability cannot be excluded. Firstly, at the time of concluding the contract, the terms should be correctly incorporated by signature, notice or by course of dealing . The question to ask is whether XYZ Garage Ltd terms applied. The agreement had been formed with its reference to the terms in the documents. Although Edward raised his concern over the exemption clause with George. However, George insisted that the exemption clause was incorporated in the contract only for the purpose of the insurance.

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