7. Exemption clauses

Question 1

Contra preferntum rule?

Answer 1

Ambigious exemtption clauses construed against person relying on it (liable)

Question 2

Clause exempting negligence (reasonable skill and care)

Answer 2

1. must incorporated + intend to exclude
2. loss and damage exclusion clause is valid if reasonable
3. cannot exclude for PI or death

Question 3

Clause exempting fit for purpose or match description

Answer 3

1. must incorporated + intend to exclude
2. exclusion clause is valid if reasonable

Question 4

Express exemption clause

Answer 4

1. must incorporated + intend to exclude
2. exclusion clause is valid if reasonable

Question 5

What is reasonableness test?

Answer 5

• clause is fair and reasonable to be in contract
• at the time it was made
• with the parties knew or ought to know

Question 7

Valid exclusion clause must be

…

Answer 7

1. Incorporated (signature, course of trade) AT time of contract
2. Notice - reasonable person notice (red hand rule)
3. Construction - clear words- cannot exclude PI/death (UCTA) or fit for purpose + quality (CRA)