Exclusion clauses Flashcards
1
Q
What is an exclusion clause?
A
Term of a contract that excludes a party from liability which would otherwise be a contract breach
2
Q
What’s a limitation clause?
A
Term that limits the liability of a party to a specific amount in the event that a contract term is breached
3
Q
What does an exclusion or limitation clause do?
A
- Allocate risk between parties to a contract
- Limit the exposure of a party to risks
4
Q
For an exemption clause to be enforceable, it must:
A
- Cover the loss which has occurred in the circumstance
- Not be rendered unenforceable under legislation
5
Q
What are ways to incorporate an extension clause into a contract?
A
- By signature
- By notice
- By consistent dealings
- Contra proferentum rule
6
Q
What is a key provision of the UCTA?
A
The act only applies to business liability/things done in the course of business
