Exclusion clauses

• What is an exclusion clause?


  A term in a contract that excludes or limits liability for a breach of the contract
• What does the case of L’Estrange v Graucob say about contracts?

  The basic rule is that if you sign an agreement, then you are bound by that agreement
• What does the case of Curtis v Chemical cleaning say?

  If a term in a contract has been misrepresented then the term will be interpreted in accordance with the misrepresentation not what is written
• What did the case of Olley v Marlborough say?


  Any attempt to introduce new terms to the contract after acceptance will fail, unless there is a new contract to vary the original contract
• What does the case of Hollier v Rambler motors say?

  If the parties have dealt on the same terms in the past, it is possible to imply knowledge of the clause from past dealings, providing that these dealings have been consistent
• What is the contra Proferentem rule?

  This rule is designed to assist in the misrepresentation of the meaning of terms

  Where there is doubt about the meaning of a term in a contract, the words will be constructed against the person who put them in the contract
• What case links to the contra proferentem rule?

  Persimmon homes
• What does section 11(4) of the Unfair Contract Terms Act 1977 Say?

  Is the exclusion clause reasonable considering what the parties knew at the time of when the contract was made?

  (Smith v Eric S Bush)
• What does section 11(5) say?

  This requires the party who inserts the clause in the contract to show that it is reasonable in all circumstances to include it
• What does section 31 say?

  This prohibits a term excluding or limiting liability with respect to sale of goods
• What does section 57 say?

  This prohibits a term excluding or limiting liability with respect to the supply of services
• What does section 62 say?

  Requires all consumer contract terms and notices to be fair
• What does section 65 say?

  This prohibits exclusion or restriction of liability for death or personal injury resulting from negligence