terms- exclusions and limitation clauses

Question 1

what is an exclusion clause

Answer 1

terms in a contract which excludes liability of a party for breach of contract

Question 2

what is a limitation clause

Answer 2

limits the liability of a party if the contract is breached

Question 3

what are the 3 ways common law controls

Answer 3

1. signature
2. reasonable notice
3. previous cause of dealing

Question 4

what does signature mean in common law controls

Answer 4

if a document is signed at the time of making a contract then its contents become terms even if not read and understood (l’estrange v graucob)
- however, if verbal or alternate written clarification of a term may not exclude liability (Curtis v chemical cleaning)

Question 5

what does reasonable notice mean in common law controls

Answer 5

if separate written terms are presented, those terms only become part of a contract if it is said that the recipient had reasonable notice of them (alley v Marlborough court hotel)

Question 6

what does it mean by previous course of dealings in common law controls

Answer 6

if two parties have made a contract before that included exemption clauses, that clause may also apply to the new one, even if the usual steps to incorporate the clause haven’t been taken (hollier v rambler motors)