Legal Framework

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1. Definition of Clause
According to Legal dictionary, clause is referring to a section, phrase, paragraph, or segment of a legal document, such as a contract, deed, will, or constitution, that relates to a particular point.
A document is usually broken into several numbered components so that specific sections can be easily located. The Supremacy Clause, for example, is part of Article IV of the U.S. Constitution
An exclusion clause is a term in a contract that seeks to restrict the rights of the parties to the contract.
Traditionally, the district courts have sought to limit the operation of exclusion clauses. In addition to numerous common law rules limiting their operation, in England and Wales, the main statutory interventions are the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999. The Unfair Contract Terms Act 1977 applies to all contracts, but the Unfair Terms in Consumer Contracts Regulations 1999, unlike the common law rules, do differentiate between contracts between businesses and contracts between business and consumer, so the law seems to explicitly recognize the greater possibility of exploitation of the consumer by businesses.
I. INCORPORATION
The person wishing to rely on the exclusion clause must show that it formed part of the contract. An exclusion clause can be incorporated in the contract by signature, by notice, or by a course of dealing.
2. SIGNED DOCUMENTS
If the plaintiff signs a document having contractual effect containing an exclusion clause, it will automatically form part of the contract, and he is bound by its terms. This is so even if he has not read the document and regardless of whether he understands it or not. See: • L'Estrange v Graucob [1934] 2 KB 394.
However, even a signed document can be rendered wholly or partly ineffective if the other party has made a misrepresentation as to its effect. See: • Curtis v Chemical Cleaning Co [1951] 1 KB 805.
3. UNSIGNED

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