Essay on exclusion clauses

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Aspects of Contract and Negligence for Business (ACNB) LECTURE 6 TOPIC: Exclusion Clauses Aim: to explore the legal effects of exclusion clause in contracts Objectives I. Meaning of exclusion clause II. Describe and apply the two main legal requirements governing the legality of exclusion clauses in contract a) Common law rules/controls- judicial process b) Statutory rules /controls WHAT IS AN EXCLUSION CLAUSE? An exclusion or exemption clause is a clause that seeks to exclude a party’s liability when there is a breach of the contract) Example: Grace hires a powerful laptop together with suitable software for her job from Office Supplies Ltd. Grace signed a written hire contract with…show more content…
The dress was badly stained in the course of cleaning. Decision: Liability for damage to the wedding dress was not excluded due to misrepresentation of the clause as to the effect of the document which she signed. She was entitled to assume that she was running he risk of damage to beads and sequins only. Activity 1: Group 2 Learners in a group: 5 mins A contract between Peter and Quinton includes a clause excluding Peter’s liability in certain circumstances. When Quinton enquires as to the meaning of this clause, Peter replies that she does not wish to provide oral interpretation, but that Quinton must read the clause herself. She reads the clause and signs the contract. Peter later seeks to rely on the exclusion clause, and Quinton claims that Peter should have interpreted the clause for her. The clause itself is not misleadingly phrased. Consider whether Quinton is likely to be able to prevent Peter from relying on the cause. Activity1 Feedback Incorporation of an exclusion clause by Notice a) An exclusion clause will not be incorporated into a contract unless the party affected actually knew of it, or was given sufficient notice of it. b) In order for notice to be adequate, the document bearing the exclusion clause must be an integral part of the contract and given at the time the contract is made. Chapleton v Barry UDC -1940)
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