Test of reasonableness (Validity)

• (1) Clauses that attempt to exclude or limit liability for any other damage caused by negligence
• (2) Clauses attempting to exempt liability in consumer contracts which is not specifically covered in the Act
• (3) Clauses attempting to exempt liability in business contracts entered into on standard term
• (4) Clauses in business contracts that attempt to exempt of the liability for a breach of the implied terms as to title description , satisfactory quality , fitness for purpose and sale by sample
• (5) Clauses in contract that attempt to exempt liability for misrepresentation
• The burden of proving whether an exemption clause is reasonable is on the party seeking to rely on it.
• The term must be fair and reasonable taking into account all the circumstances that were known or should have been known when the contract was made