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The Way Exclusion Clauses Are Treated

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The way exclusion clauses are treated has developed over the years through case law and the courts, but their purpose remains the same: to exclude the contracting party of liability in the event that the contract is breached or problems are incurred during the time of the contract. Contracts are legally enforcing promises freely entered into by two or more parties. Over the past few decades, a conflict has emerged between the freedom for people to contract to any contracts they wish and interference by the courts and parliament. Classically, as long as the party has the mental capacity and is of legal age to contract, they may do so. However since the introduction of statutes such as the Unfair Contract Terms Act (UCTA) 1977 and the Unfair Terms in Consumer Contracts Regulations (UTCCR) 1999 this liberty has been reduce significantly. The UCTA and the UTCCR have caused much controversy and have been reviewed by both Law Commissions. Moreover, there is currently discussion within Parliament about the amendment of the existing legislation and introduction of the Consumer Rights Bill. However, this essay will discuss whether the interference resulting in different treatment for exclusion clauses was for better or for worse concentrating solely on the current legislation. These legislations focus mainly on exclusion clauses which in many cases they are not looked upon fondly by courts due to the potential for an abuse of bargaining power and unfair contracting. The first item to

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