Exclusion Causes Ao1 Flashcards
What is an exclusion clause?
A term that seeks to restrict the rights of 1 party to the contract
2 ways to regulate exclusion clauses and detail/name them
Common law controls; by SIGNATURE, REASONABLE NOTICE, PREVIOUS DEALING.
Statute- UCTA 1977 + UTCCR 1999
L’Estrange v Graucob
Rental of vending machine, contract signed, unaware of exclusion clause. Bound to contract as had been signed
Parker v South Eastern Railways (SER)
Cloakroom ticket said ‘see back’. Back said only liable £10 for any loss of property. Held:reasonable notice
Olley v Marlborough Court Ltd
Back of hotel room door said exclusion clause. Held:too late for reasonable notice as by that time contract concluded
Spurling v Bradshaw
Parties dealing for several years. Exclusion clause only received after contract conclusion. Held:previous dealings warranted the incorporation of the exclusion clause despite not including it
What act puts limitations on exclusion clauses?
Unfair contractual terms act 1977
S2(1) UCTA 1977
Liability for negligence cannot be excluded
S3 UCTA 1977
Liability for non performance can not be excluded. E.g no performance at all, substantially different from expected.
S6 UCTA 1977
CRA clauses cannot be excluded
S11 UCTA 1977 and what case linked?
Test of reasonableness-see if term excluded is reasonable.
George Mitchell v Finney Lock Seeds
George Mitchell v Finney Lock Seeds
Purchased seeds to plant, which were not fit for consumption. Contract contained a clause limiting liability to price of seeds. Held: clause was unreasonable as buyer would not be aware of fault