StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Law of Contract - Exclusion Clauses - Essay Example

Cite this document
Summary
Law of Contract - Exclusion Clauses Instructor Institution Date Law of Contract - Exclusion Clauses The scenario between Marion and her local electrical store (Practical Electricals Ltd) relates to exclusion clauses under the law of contract. Often, exclusion clauses are common feature of contracts that have been drafted professionally…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
Law of Contract - Exclusion Clauses
Read Text Preview

Extract of sample "Law of Contract - Exclusion Clauses"

Download file to see previous pages

Exclusion clauses are only considered valid if they are consistent to the law and have been included correctly in the contract. Interpretation rules of contracts require that exclusion clauses be unambiguous and clearly expressed. This is because if they are unambiguous or are unclearly unexpressed they will be ineffective. I would notify Marion that under the UK laws, exclusion clauses are regulated by statutes: the Unfair Terms in Consumer Contracts Regulations 1999 and the Unfair Contract Terms Act (UCTA) 1977, as well as a number of common law rules that limit the operation of these clauses.

2 There was a breach of implied terms by the seller (Practical Electricals Ltd) acting in the course of business as the seller implied that the goods supplied under the contract were of satisfactory quality only for the buyer to find that they are not of satisfactory quality. . king, it was expounded that if the exclusion is wider than the party relying on it must put more efforts to bring the attention closer to the other party.3 Also, incorporation test demands that a contract pass the test of incorporation by notice which requires that an exclusion clause be incorporated into the contract if the party relying on it made considerable efforts in bringing attention of the clause to the other party, as stated in the case of Parker v SE Railway.

4 More importantly, as demonstrated in Olley v Marlborough, the party relying on a given clause must give notice regarding exclusion clauses before entering into an agreement with the other party.5 . Besides, the clauses should be part of the contract. As noted in the case of Chapleton v Barry UDC, reliance of exclusion clause that does not form part of the contract by one of the parties renders the clause ineffective.6 In this case, the defendant was relying on exclusion clause that did not form part of the clause as it was written on the back of the receipt.

In addition, the previous course of dealings forms a reasonable basis of incorporation of exclusion clauses. Incorporation of exclusion clauses may be done if there have consistent and regular course of dealings between the parties to the contract, as illustrated in the case of McCutcheon v David MacBrayne Ltd.7 Traditionally, incorporation by signature is considered as the most appropriate way of ensuring that the exclusion clauses form part of the contract. An exclusion clause is part of the contract if the document on which the clause is written has been signed by all relevant parties, as illustrated in the case of L'Estrange v Graucob.

8 In the case, it was held that the party signing a contract is bound by it and it would be immaterial whether

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Law of Contract - Exclusion Clauses Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/law/1446898-law-of-contract-exclusion-clauses
(Law of Contract - Exclusion Clauses Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/law/1446898-law-of-contract-exclusion-clauses.
“Law of Contract - Exclusion Clauses Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/law/1446898-law-of-contract-exclusion-clauses.
  • Cited: 0 times

CHECK THESE SAMPLES OF Law of Contract - Exclusion Clauses

Law of Contract: Exclusion Causes and Privity

Such liability is strictly for the parties involved in a contract in exclusion to any third parties.... A contract is a result of an agreement involving two or more parties where each party is bound by some obligations perform in accordance with the terms and conditions in the contract.... A contract can therefore confer rights or entail obligations on the parties included in the contract.... hellip; The doctrine of privity in contract means that only the parties involved in a contract are allowed to enforce it....
9 Pages (2250 words) Case Study

The Difference between an Exclusion Clause and Limitation Clause

According to law of contract exclusion clause in the body of the contract between two parties will be a term incorporated in the contractual text to lessen and restrict the liability of one or the other party to the contract.... What are the different ways in which terms (exclusion clauses) may be incorporated into a contractAns.... The different ways in which terms(exclusion clauses) may be incorporated into a contract are the following :(a) It should be a contained in the contract in a clear and unambiguous manner and there should be no confusion regarding the meaning of the clause, in addition to that both the parties must be aware about the inclusion of the clause in the text of the contract....
5 Pages (1250 words) Essay

Unfair Terms in the Contracts and Exclusion of Liabilities

This paper “Unfair Terms in the Contracts and exclusion of Liabilities” examines some of situations of fairness and certainty.... The Court of Appeal has recognized the reasonableness of the claim for exclusion of the liability of an IT supplier in the case of Watford Electronics v Sanderson.... There are circumstances under which the courts have barred the use of a particular term of the contract simply because the term could be treated as an 'unfair' one....
62 Pages (15500 words) Essay

The Ways an Exclusion Clause Could Enter into a Contractual Agreement

There are some legal cases that tend to demonstrate how the weaker parties, in recent years, have at least tried to see that such exclusion clauses are incorporated into the contracts: this report would investigate how such a clause may be included in a typical Irish legal case that involved disagreement over the commercial contract.... This case study is necessary in order to highlight the seriousness of exclusion clauses in contractual agreements.... The legal case of Analog Devices BV & ors v Zurich Insurance Company & anor2, decided upon at the Irish Supreme Court, is a typical case to prove how exclusion clause could result in a monumental loss for one of the parties involved....
11 Pages (2750 words) Essay

Exclusion Clauses in Business Contracts

Gillespie needs to be aware of the contractual implications of warranties, representations and exclusion clauses.... While most businesses are bound to the necessity of providing satisfactory quality of goods, they can protect themselves from very high levels of liability through exclusion clauses.... Taking into account the standard terms of a business contract, it must be noted that exclusion clauses of the Company's terms and conditions of sale needs to absolve it of any liability on the condition of the goods, such that it will be invalidated only if it is unreasonable....
7 Pages (1750 words) Essay

Contract Law: The Caddy Shack Restaurant

Following these two concerns, two exclusion clauses could be drafted for the purpose of limiting or excluding altogether the restaurant's liability under the two aforementioned circumstances.... The exclusion clauses that Caddy Shack restaurant needs will ultimately impose restrictions to its clients.... In this respect, these two issues must be provided for and balanced in the drafted exclusion clauses.... First exclusion clause: Caddy Shack will not be held liable for any losses or injuries that arise as a result of violation of the rules and regulations within the Caddy Shack restaurant's premises....
5 Pages (1250 words) Essay

Unfair Contract Terms Act 1977

This kind of clause in a contractual agreement can be unlawful or lawful depending on the nature of the liability which the party was seeking… exclusion clauses are common in business contracts in which settlements of liability are unreasonable and would otherwise threaten the financial assets.... Contracts with exclusion clauses require the offeree to understand the terms exclusion clauses are guided by statutory provision and case law (Barker, 2007)....
7 Pages (1750 words) Essay

Liability in Contract Versus Liability in Tort

contract DiscussionIntroductionMagistrates play an important role in the UK justice system.... They are not lawyers but are trained in the contract DiscussionIntroductionMagistrates play an important role in the UK justice system.... Liability in contract vs Liability in TortA contract can be defined as “an agreement between parties outlining their duties and responsibilities to one another”.... Liability in contract arises when a party fails to do what is set out in the contract....
8 Pages (2000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us