exemption clauses Flashcards
incorporation into contract
by signature, by notice or by a course of dealing
CASE: buyer purchased a slot machine and signed a contract which had on small print that warrants were excluded. they buyer was not eligible for damages as the contract with the exemption clause was signed. it was immaterial if the buyer read it or not
L’estrange v F Graucob Ltd (by signature)
CASE: Plaintiff hired 2 deck chairs on beach from the council. He paid and received 2 tickets from attendants. he had no idea they contained conditions. saying that company was not liable for any damages. the deck chair collapsed and plaintiff was injured. HELD council were liable the conditions were not properly advertised
Chapelton v Barry Urban District Council (By notice)
CASE: mrs Olley booked a hotel and noticed an exemption stating the hotel was not responsible for any items stole in their room. Mrs Olley went out of the hotel and came back with her items stolen. Hotel was liable as the notice was ineffective because she was unaware of it at the time of formation.
Olley V Marlborough Court
Contra Proferentem
a rule of contractual interpretation which provides that an ambiguous term in a contract will be construed against the party responsible for its inclusion in the contract.
CASE: Plaintiff’s car was stolen while in defendants garage for repairs. Roskilly’s exemption clause was ambiguously expressed, therefore roskilly was not excluded from liability.
Livingstone V Roskilly (construction of exemption clause was not excluded from liability)
CASE: Photo production contracted securior to patrol their factory at night. One of secueriors employees committed an injurious act which resulted in photo production making a big loss. because the exemption clause of secuiror was clear and covered in liability in question. They were excluded from liability.
Photo Production V Securicor (construction of exemption clause was excluded from liability).
Entire Agreement Clauses
a contractual provision stating that the contract represents the parties’ complete and final agreement and supersedes all informal understandings and oral agreements relating to the subject matter of the contract.”
