Exemption Clauses

Question 1

What are exemption clauses?

Answer 1

terms of the contract that seek to exclude or limit liability

Question 2

What is a case example of exemption clauses?

Answer 2

Thornton v Shoe Lane Parking Ltd

Question 3

What happened in Thornton v Shoe Lane Parking Ltd?

Answer 3

had a condition that the company would not be liable for any loss or damage to customers’ motor vehicles when the vehicle is in the parking building

Question 4

What is the basic framework for exemption clauses?

Answer 4

1) identify the breach
2) incorporation (validity)
3) construction
4) statutory controls

Question 5

What are 3 examples of breaches?

Answer 5

breach of contract
negligence
misrepresentation

Question 5

What are the 3 ways to incorporate terms into a contract?

Answer 5

signature
notice
previous dealings

Question 6

What is the signature rule?

Answer 6

party is in general bound by its signature whether or not they have read the terms

Question 7

What is the red hand rule?

Answer 7

the more onerous or unusual the term, the greater the steps must be taken to draw its existence to the other party

Question 8

What is a case example of giving notice to terms?

Answer 8

Parker v South Eastern Railway

Question 9

What happened in Parker v South Eastern Railway?

Answer 9

Parker handed ticket stating ‘see back’ where exclusion clause was found avoiding liability for loss of items over £10, P had lost bag worth more, Court of Appeal determined if P had not read the terms but sufficient notice was given then he would be bound by those terms

Question 10

What is the contra proferentem rule under construction?

Answer 10

in event of ambiguity around meaning of clause, ambiguity will be resolved against party seeking to rely on exemption clauses

Question 11

What 2 things come under construction?

Answer 11

contra proferentem rule
liability for negligence