Exclusion Clauses Essays
Exclusion Clauses Essays
Business Law
Word Count: 1950
Exclusion Clauses Essay
Exemption clauses are an agreement in a contract which helps the party to have limited or to exclude liability. It can be used unfairly which makes it a disadvantage to other partys which is why there are laws in place to limit the use of clauses and to make it fair. Mr. Torres has been using Greased Lightening for five years this time he placed a different order and at the same time the contract arrived late as well as that there were new terms stated in the contract now I will find out whether the clauses are valid explain them and any possible remedies.
According to Lord Fraser he said when exclusion clauses are made that exclude liability will be dealt with strictly as ‘these principles are not applicable in their full rigour when considering the effect of clauses merely limiting liability’ this was represented in (Ailsa Craig Fishing v Malvern (1983)) case. Therefore moving back to Mr. Torres case will be dealt with attention since it is excluding liability. If Greased Lightening exclusion clause was clear and unambiguous then it wouldn’t been an application of the contra proferentum rule. However, in my opinion it does seems ambiguous and unclear reason being notice arrived two days later than usual and the clause was written in small and pale gray text therefore it seems uncertain. All clauses need to satisfy the Unfair Contra Terms Act (1977) and pass the test of reasonableness
There are three types of incorporation of clauses one being by signature other being by notice and finally incorporation by a consistent and frequent course of dealings. In this case clause has been incorporated as a term in the contract using consistent and frequent course of dealings. For the term to be incorporated the party in this case, Greased Lightning need to give reasonable time to Mr. Torres. Incorporation by signature occur when a party signs a document then they are bound by the terms and
Business Law
Word Count: 1950
Exclusion Clauses Essay
Exemption clauses are an agreement in a contract which helps the party to have limited or to exclude liability. It can be used unfairly which makes it a disadvantage to other partys which is why there are laws in place to limit the use of clauses and to make it fair. Mr. Torres has been using Greased Lightening for five years this time he placed a different order and at the same time the contract arrived late as well as that there were new terms stated in the contract now I will find out whether the clauses are valid explain them and any possible remedies.
According to Lord Fraser he said when exclusion clauses are made that exclude liability will be dealt with strictly as ‘these principles are not applicable in their full rigour when considering the effect of clauses merely limiting liability’ this was represented in (Ailsa Craig Fishing v Malvern (1983)) case. Therefore moving back to Mr. Torres case will be dealt with attention since it is excluding liability. If Greased Lightening exclusion clause was clear and unambiguous then it wouldn’t been an application of the contra proferentum rule. However, in my opinion it does seems ambiguous and unclear reason being notice arrived two days later than usual and the clause was written in small and pale gray text therefore it seems uncertain. All clauses need to satisfy the Unfair Contra Terms Act (1977) and pass the test of reasonableness
There are three types of incorporation of clauses one being by signature other being by notice and finally incorporation by a consistent and frequent course of dealings. In this case clause has been incorporated as a term in the contract using consistent and frequent course of dealings. For the term to be incorporated the party in this case, Greased Lightning need to give reasonable time to Mr. Torres. Incorporation by signature occur when a party signs a document then they are bound by the terms and
Bibliography: Ailsa Craig Fishing v Malvern (1983) Chapelon v Barry UDC (1940) Hadley v Baxendale (1865) Harris v Wyre ‘Judicial Approach’ (P. 64, Morgan – Taylor, Business Law Handbook) Olley v Marlborough Court Hotel (1949) Parker v South Eastern Railway Company (1930) Phillips Products Ltd v Hyland (1987) Spurling v Bradshaw (1956) “The Unfair Contract Terms Act 1977” (P.216, Morgan-Taylor, Principles of Business Law) Thornton v Shoe Lane Parking (1971)