LAWS 203 - 'Exclusion Clauses'

Front

When are exclusion clauses declared effective by the courts? Why?

Back

-When the exclusion clause is clearly expressed.

<- An indication of this is when the exclusion clause explicitly states that the vendor accepts " no liability whatsoever in any event, for any consequential or indirect loss".

-When the parties explicitly agree to such a provision by signing the agreement in which it is contained.

Front

Define the concept of contra proferendum.

Back

-Contra proferendum is a principle of law that the courts use to interpret exclusion clauses against the party that implemented them in the first place.

<-This is to limit the effect of exclusion clauses.

Front

When are Exclusion clauses declared ineffective by the courts? Why?

Back

-When the exclusion clause is unclear.

-In these types of situations it will be interpreted against the party wishing to implement such a provision.

<-Or a reasonable man may not give effect to such a provision at all!

• *Come back to the fraud sub-heading as it was not relevant to the tutorial question but may be relevant to the end of year exam.