Exclusion Clauses - Paper 3

Question 1

What is an exclusion clause?

Answer 1

A clause put into the contract to try to exclude or limit liability

Question 2

In order to be valid, exclusion clauses need to be what?

Answer 2

Written with clear and unambiguous words

Question 3

What are the three ways an exclusion clause can be incorporated into a contract?

Answer 3

1) Signature
2) Reasonable Notice
3) Previous Course of Dealing

Question 4

What was the decision in Curtis v Chemical Cleaning?

Answer 4

If a person signs a contract, they are bound by the terms whether they read them or not, unless the person verbally explains it and it ends up being different to the one in the contract

Question 5

Which case held that the clause can only be valid if reasonable notice is given before the party enters the contract?

Answer 5

Olley v Malborough Hotel

Question 6

What is meant by previous course of dealing?

Answer 6

If the parties have dealt with each other before, and they regularly make the same type of contract, the courts will presume you will be aware of the terms in any future contracts

Question 7

What does section 31 CRA state?

Answer 7

A trader can never exclude or limit liability in relation to sections 9, 10, and 11

Question 8

What does section 57 CRA state?

Answer 8

A trader can never exclude or limit liability for the supply of services in relation to sections 49 and 52

Question 9

Which section CRA states that unfair terms will not bind a consumer?

Answer 9

65

Question 10

Which Act of Parliament governs contracts between businesses

Answer 10

Unfair Contract Terms Act 1977