12. Exclusion and limitation clauses

What is the name given to a term in a contract that prevents one party being liable for a breach of contract?

• Exclusion clause

• Limitation clause

What is the name for a term in a contract that sets an upper limit on liability for a breach?

• An exclusion clause

• A limitation clause

Where would you normally find an exclusion clause? (Pick 2)

• Standard form contracts

• Notices

• In a separate agreement to the original contract

Will you have an opportunity to negotiate the terms of a contract for a rail ticket?

• Yes

• No

Will you have an opportunity to negotiate the terms for a mobile phone contract?

• Yes

• No

If the agreement is signed will the parties generally be bound by that agreement?

• Yes

• No

Which case illustrates that a party will generally be held to an agreement they have signed even if they haven't read it?

• L'Estrange v Graucob

• Smith v Hughes

• Smith v Brown

• Baker v Matthews

Why couldn't the dry cleaners rely on the exclusion clause in Curtis v Chemical Cleaning?

• An oral assurance had been made

• The exclusion clause was not written down

• There was no exclusion clause

• The chemical was illegal

Why wasn't the term incorporated in Olley v Marlborough Court Hotel?

• The notice was inside the Olley's bedroom

• There was no exclusion clause

• The exclusion clause was unlawful

• The customers did not get a receipt

Why did the exclusion clause fail in Chapelton v Barry UDC fail?

• There was no exclusion clause

• The exclusion clause was on a receipt/ticket

• The exclusion clause did not apply to deck-chairs

• The council were not insured