Finals - Exemption Clauses & Accounts and Responsibility Flashcards
(24 cards)
What is an exemption clause?
A term in a contract that seeks to exclude or limit liability for certain breaches or legal duties.
How can exemption clauses be incorporated into a contract?
By signature, by reasonable notice, by a consistent course of dealing.
What case shows that signing a document binds you even if you haven’t read it?
L’Estrange v Graucob – bound by signed terms unless misrepresented.
What is the principle from Parker v South Eastern Railway?
Reasonable notice must be given of the clause before or at the time of contracting.
When must the document containing the clause be one a reasonable person would expect to contain terms?
Chapelton v Barry UDC – a receipt isn’t a contractual document.
What is the contra proferentem rule?
Ambiguities in exemption clauses are interpreted against the party relying on them.
What case involved an onerous clause that needed special attention drawn to it?
Interfoto v Stiletto – unusual terms must be clearly highlighted.
What did Photo Production v Securicor establish?
Clauses can exclude liability even for fundamental breaches, as long as properly incorporated and clearly worded.
What is the purpose of UCTA 1977?
To regulate exclusion clauses in non-consumer contracts, especially in standard terms.
What is the test under s.11 of UCTA 1977?
The reasonableness test: Is the term fair and reasonable in the circumstances known to the parties at the time?
Key case applying UCTA’s reasonableness test?
George Mitchell v Finney Lock Seeds – clause failed the reasonableness test due to inequality of bargaining power.
How does the Consumer Rights Act 2015 relate to exemption clauses?
It protects consumers against unfair terms, especially those excluding liability for death/injury or requiring disproportionate duties.
What is the rule in Rylands v Fletcher?
A person who brings something likely to cause mischief onto their land is strictly liable if it escapes and causes damage.
What are the elements of Rylands v Fletcher liability?
- Accumulation on land
- Non-natural use
- Escape
- Foreseeable damage
What counts as ‘non-natural’ use of land?
Unusual or extraordinary use.
What are the defences to Rylands v Fletcher?
- Act of God
- Act of a third party
- Plaintiff’s consent or fault
- Statutory authority
Is Rylands now considered a subset of nuisance?
Yes – Rylands is part of private nuisance, not a standalone tort.
What is vicarious liability?
A form of strict liability where an employer is held liable for torts committed by an employee in the course of employment.
What case sets the test for vicarious liability?
Various Claimants v Catholic Child Welfare Society – two-stage test.
How did Lister v Hesley Hall develop the law on vicarious liability?
Introduced the ‘close connection’ test.
Can multiple defendants be liable for the same tort?
Yes – through joint and several liability.
What is contribution in tort?
When one tortfeasor seeks to recover a fair share from others after being held liable.
What’s the principle from Wilsher v Essex AHA?
Where multiple potential causes exist, claimant must prove on the balance of probabilities that the defendant caused the harm.
What’s the idea behind attribution of responsibility?
That liability should reflect degrees of fault and causation.
