Week 7 - Exclusion/Exemption Clauses

Question 1

What is an exclusion/exemption clause?

Answer 1

An express term which seeks to exclude one party’s liability in the event of a breach

Question 2

What is the three stage test for an exclusion/exemption clause to be viable?

Answer 2

• is it incorporated into the contract
• is it clear and unambiguous
• it is valid under the Unfair Contract Terms Act 1977 and Consumer Rights Act 2015

Question 3

When must notice of the exemption clause be given?

Answer 3

Before or at the time the contract was made

Question 4

What is the ONLY exception to the concept that a party signing a document will be bound by its content?

Answer 4

If your attention was not drawn to something that was unreasonable

Question 5

For unsigned documents, what must be shown?

Answer 5

Must show that a reasonable person would think it to be part of the contract

Question 6

What is the red hand rule?

Answer 6

The more unreasonable the clause, the greater the notice which must be given of it

Question 7

What is the contra proferentum rule?

Answer 7

Courts will take a strict approach to interpretation and if in doubt, interpret against the party seeking to rely upon it