law defination
Definition
Exclusion clause is known as the exemption clause is a term of contract which seeks to modify obligations of the contract or limit the liability of parties.
Explanation
In certain circumstances, the party to a contract is not aware of the exclusion clause or its effect which limits his rights. For an exclusion clause to be valid, it must be incorporated into the contract; be clear and precise; reasonable and fair; and the notice of exemption clause must be reasonably sufficient
Concept
Ways of incorporation terms or concept - firstly, it is by signature whereby the person who signed is bound by the documents that he signed. Secondly, it is by a consistent course of dealing whereby there must be a regular and consistent course of dealing. Thirdly, it is by notice whereby the notice of exclusion clause has been given to the other party.
The validity of the exclusion clause in the notice must meet 3 requirements. First, the clause must be known by the party before or at the time of contacting. In the case of 0lley v Marlborough(1949), the court held that the contract was completed at the reception desk and the plaintiff’s right is not affected. The second requirement is the content of a notice is an integral part of contract. In the case of causer V browne (1952), the court states that there was no evidence that the customer that took the dress to the dry cleaner knows about the terms and a reasonable person would regard it nothing more than a receipt for the dress. The third requirement is reasonable notice must be given.
If the exclusion clause is ambiguous, the contra rule will be applied. The interpretation would be placed on the exclusion clause is of the least advantage to the party who tries to rely on it, as held in Hollier V Rambler motors(1972) where the court states that the incorporated exclusion clause is not effective to protect Rambler Motors Ltd for liability because it should be construed against the person rely on it.
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Exclusion clause is known as the exemption clause is a term of contract which seeks to modify obligations of the contract or limit the liability of parties.
Explanation
In certain circumstances, the party to a contract is not aware of the exclusion clause or its effect which limits his rights. For an exclusion clause to be valid, it must be incorporated into the contract; be clear and precise; reasonable and fair; and the notice of exemption clause must be reasonably sufficient
Concept
Ways of incorporation terms or concept - firstly, it is by signature whereby the person who signed is bound by the documents that he signed. Secondly, it is by a consistent course of dealing whereby there must be a regular and consistent course of dealing. Thirdly, it is by notice whereby the notice of exclusion clause has been given to the other party.
The validity of the exclusion clause in the notice must meet 3 requirements. First, the clause must be known by the party before or at the time of contacting. In the case of 0lley v Marlborough(1949), the court held that the contract was completed at the reception desk and the plaintiff’s right is not affected. The second requirement is the content of a notice is an integral part of contract. In the case of causer V browne (1952), the court states that there was no evidence that the customer that took the dress to the dry cleaner knows about the terms and a reasonable person would regard it nothing more than a receipt for the dress. The third requirement is reasonable notice must be given.
If the exclusion clause is ambiguous, the contra rule will be applied. The interpretation would be placed on the exclusion clause is of the least advantage to the party who tries to rely on it, as held in Hollier V Rambler motors(1972) where the court states that the incorporated exclusion clause is not effective to protect Rambler Motors Ltd for liability because it should be construed against the person rely on it.
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