Contract 6 - Exclusion Clauses

Question 1

What is an exclusion clause?

Answer 1

A term that attempts to exclude or limit liability

Question 2

What are the three rules relating to exclusion clauses?

Answer 2

1. Clause incorporated
2. Clause drafted and construed properly
3. Clause must not be prohibited by statute

Test: what liability exists but for the exclusion

Question 3

How can a clause be validly incorporated?

Answer 3

1. Signature
2. Notice
3. Custom or previous dealings