Exclusion Clauses

Question 1

What is an exclusion clause?

Answer 1

A term that seeks to restrict the rights of 1 party to the contract

Question 2

2 ways to regulate exclusion clauses and detail/name them

Answer 2

Common law controls; by SIGNATURE, REASONABLE NOTICE, PREVIOUS DEALING.

Statute- UCTA 1977 + UTCCR 1999

Question 3

L’Estrange v Graucob

Answer 3

Rental of vending machine, contract signed, unaware of exclusion clause. Bound to contract as had been signed

Question 4

Parker v South Eastern Railways (SER)

Answer 4

Cloakroom ticket said ‘see back’. Back said only liable £10 for any loss of property. Held:reasonable notice

Question 5

Olley v Marlborough Court Ltd

Answer 5

Back of hotel room door said exclusion clause. Held:too late for reasonable notice as by that time contract concluded

Question 6

Spurling v Bradshaw

Answer 6

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

Question 7

What act puts limitations on exclusion clauses?

Answer 7

Unfair contractual terms act 1977

Question 8

S2(1) UCTA 1977

Answer 8

Liability for negligence cannot be excluded

Question 9

S3 UCTA 1977

Answer 9

Liability for non performance can not be excluded. E.g no performance at all, substantially different from expected.

Question 10

S6 UCTA 1977

Answer 10

CRA clauses cannot be excluded

Question 11

S11 UCTA 1977 and what case linked?

Answer 11

Test of reasonableness-see if term excluded is reasonable.

George Mitchell v Finney Lock Seeds

Question 12

George Mitchell v Finney Lock Seeds

Answer 12

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