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Contract Law, Exclusion Clause - Coursework Example

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Exclusion Clause in Service Contracts – Whether One party to a contract can restrict their liability by adding negligence by it will be excluded from the future liability – An Analysis Word Count-1539 excluding List of References Introduction “The Supply of Goods and Services Act 1982 (SGSA)” covers all contracts involving the supply of services…
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Contract Law, Exclusion Clause
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Download file to see previous pages Some of the examples of service contracts are providing accounting services , provision of health care , provision of legal services,etc.(Bradgate & White 2007 :211). A service provider who deals with his customer cannot enforce his own printed standard terms of conditions thereby cannot either restrict or exclude his accountability for infringement of contract or offer an incomplete service for which he has to demonstrate that exclusion clause is in line with “ test of fairness or reasonableness.” If he has not taken any reasonable skill or exercise reasonable care, he will be held liable under “negligence” under the common or contractual law. The act of negligence engrosses any infringement under common law or any contractual duty to exercise reasonable skill or to show reasonable care. This study will analyse whether by including an exclusion clause in a service contract, a party to contract can avoid the liability for any loss caused by the negligence. Exclusion Clause and Negligence In UK, service contracts do contain limitation or exclusion clauses. Sometimes, these limitation clauses are upheld in the case law. As regards to exclusion clauses pertaining to liability in a contract and in tort are normally valid only if they are rational which connotes in consideration with both contracting parties at the juncture of contract is made as per the Unfair Contract Terms Act 1977. An exclusion clause is like a double -edged sword since it will be construed against the party who relies on it as held in Curtis v.Chemical Cleaning Co. 1 (Barendrecht 2007 :685). A service contract may contain an exclusion clause thereby one party wants to restrict his accountability for his negligence or infringement of contract. Moreover, such clause can be relied by a party only if it has been included in the said contract, and for the purpose of elucidation, it is applicable to the loss in the question. Its validity will then be interpreted under the “Unfair Terms in Consumer Contracts Regulations 1999” and under the “Unfair Contract Terms Act 1977.” It is to be observed that the above laws are introduced in UK on the basis ofEU Unfair Consumer Contract Terms Directive. (Lawson 2011:57). A party desirous to trust on the exclusion clause must demonstrate that it is part and parcel of the contract. Through by a notice or by signature or through the process of dealing, an exclusion clause can be inserted in the contract. For exclusion of any liability for negligence, there should be clear words in a contract as held in White v John Warwick2. (Taylor & Taylor: 136). A service supplier is accountable under the statute only for not taking rational care in the provision of service. In normal parlance, there exists no implicit responsibility to accomplish any given outcome by a supplier of service and if a buyer wishes to have such undertaking, it should be provided in the service contract as an express term. (Bradgate & White2007:212). Under s2 (2) of the Unfair Contract Terms Act 1977?accountability for any other variety of damage or loss can be kept out provided the notice or term fulfils the prerequisite of reasonableness. A service provider cannot control or exclude his accountability in negligence for loss originating from defects in services provided for either consumption or for private use by means of notice or term included in a guarantee. In an action of ...Download file to see next pagesRead More
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