Exclusion Clauses Flashcards
Types of exclusion clauses
Limit the value of a claim to the purchase price of the goods
Limit time for a defect to be discovered to 14 days.
Exclude the rights of 3rd party beneficiaries to bring a claim.
Limit or exclude liability for a breach of contract.
ASIC rules on interpreting contracts
The contract should be considered as a whole to establish intentions of the parties – Glynn v Margetson
Interpretation is not an exact science the trend (as with statutory interpretation) is for a more purposive approach
If the words are clear and unambiguous then they will be treated as representing the parties intentions.
If they aren’t then the objective test is used (set out in Investors compensation scheme Ltd v West Bromwich Building Society) what would you expect this to be?
What would a reasonable man interpret to be the meaning of the contract.
Parties intentions may be shown by post contractual actions.
Commercial practice and common sense will also be a guide.
