Contract - Exemption clauses

Question 1

What must be considered to determine if a party can rely on an exemption clause?

Answer 1

1. Incorporation
2. Construction
3. Statutory controls

Question 2

General rule about how exemption clauses will be construed in cases other than commercial contracts negotiated between parties of equal bargaining power

Answer 2

Contra proferentem - ambiguity will be resolved against the party seeking to rely upon it

Question 3

What is the purpose and scope of the Unfair Contract Terms Act 1977?

Answer 3

The Act regulates exemption clauses that seek to exclude or restrict liability where both parties are acting in the course of a business

Question 4

According to the Unfair Contract Terms Act 1977, when is the requirement of reasonableness judged?

Answer 4

At the time the contract was made