Exclusion Clauses

Question 1

What is the main rule in exclusion clauses?

Answer 1

Contra proferentem - any uncertainty in the exclusion clause will be construed as against the party seeking to rely on it

Question 2

UCTA Reasonableness

Answer 2

That it is fair and reasonable to include the clause at the time of contracting - custom made goods are more likely to have reasonableness found

Question 3

What clauses are banned under UCTA on an absolute basis?

Answer 3

1. Death or personal injury by negligence
2. Seller’s legal title to goods under SGA or SGSA

Question 4

What clauses are banned under UCTA but are subject to reasonableness?

Answer 4

1. Description requirement, quality or purpose requirement under SGA or SGSA
2. All other losses by negligence
3. Breach of contract

Question 5

What implied terms under the CRA can be excluded or limited?

Answer 5

None of them

Question 6

What is the effect of unfair terms under the CRA?

Answer 6

The term itself won’t bind the customer but the rest of the contract still stands

Question 7

What are unfair terms under the CRA?

Answer 7

1. Any term that is contrary to good faith, causes a significant imbalance between parties, and is to the consumer’s detriment
   2.Excluding or limiting liability for death or personal injury caused by reasons other than negligence
2. Excluding or limiting legal redress
3. Disproportionately expensive penalties for customers deciding not to go through with the contract
4. Making the customer bound with an unknown price
5. Trader being able to unilaterally amend terms without a valid reason
6. Trader being able to terminate contract of indefinite period, without any reasonable notice