Exemption Clauses

Question 1

Types of Exemption Clauses (3)

Answer 1

1. Exclusion clauses
2. Limitation clauses
3. Disclaimers

Question 2

To rely on an exemption clause the party must prove what three things?

Answer 2

1. Incorporation into contract
2. Covers the breach in question
3. Not made ineffective by virtue of a statute

Question 3

Incorporation by signature case

Answer 3

L’Estrange v F Graucob (Faulty Slot Machine) (Action Failed as they had signed the contract)

Question 4

What is incorporation by notice

Answer 4

Where there is an unsigned document (ticket, receipt), the party must have brought the exemption clause to the notice of the other party

Question 5

Case for exemption clause notice

Answer 5

1. Thornton v Shoe Lane (Car parking, not enforced exemption)

Question 6

What is the rule of Contra Proferentem?

Answer 6

An ambiguous term in a contract will be used against the party that wishes to enforce it. So, the term that is least helpful to the party trying to enforce it will be used.

Question 7

What are the 5 reasonable steps in deeming whether notify the plaintiff?

Answer 7

1. Timing of notice
2. Degree of notice
3. Prior course of dealing
4. Signature
5. Onerous or unusual clause

Question 8

Cases for Contra Proferentum (2)

Answer 8

1. Livingstone v Roskilly (Stolen Car at Garage, not valid exemption clause)
2. Photo Production v Securicor Transport (Burned factory, valid exemption clause)