Exclusion Clauses and Limitation Clauses (AQA A-Level Law): Flashcards

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Exclusion Clauses and Limitation Clauses
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Definition of exclusion clauses

Terms that exclude a party from liability for breach/tort

Definition of limitation clauses

Terms that restrict or cap the amount of liability

Exclusion vs limitation clauses - key difference

Exclusion removes liability; limitation only caps/restricts it

When do exclusion clauses operate fairly?

When both parties have equal bargaining power

What are standard form contracts?

Pre-prepared contracts with standardised terms, rarely negotiable

Two common law controls on exclusion clauses

Must be incorporated; will be construed by courts

Timing rule for incorporating exclusion clauses

Must be brought to attention before or at time of contract

Effect of introducing clause after contract formed

Unenforceable, regardless of how reasonable it is

Two methods of incorporating exclusion clauses

By signature or by notice/knowledge

Effect of signing a contract with exclusion clause

Bound by all terms, even if not read

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