Exclusion Clauses Flashcards
How can exclusion clauses be incorporated into a contract?
- Expressly in a signed contract.
- By notice if reasonable steps were taken to bring it to attention.
Can exclusion clauses be implied?
Yes, if there is an industry custom or a regular and consistent course of dealings that includes the exclusion.
What must an exclusion clause do to be enforceable?
It must clearly and unambiguously cover the loss suffered.
What does the Unfair Contract Terms Act 1977 say about exclusion clauses?
It voids clauses that:
1. Exclude liability for death caused by negligence.
2. Exclude liability for breach of title.
3. Exclude liability for breach of description, quality, or fitness for purpose.
What is the purpose of damages in a breach of contract?
To put the innocent party in the position they would have been in if the contract had been performed properly.
What are expectation/loss of bargain damages?
Damages designed to put the nonbreaching party in the position they would be in if the contract had been performed.
What are reliance damages?
Damages that compensate the nonbreaching party for expenses incurred in reliance on the contract up to the time of the breach.
What are nominal damages?
Damages awarded when no loss has occurred as a result of the breach, typically amounting to £1.
