Pros And Cons Of Exclusion Clauses

If we look at into the various ingenious devices developed by the Courts to contain the mischief of exclusionary clauses usually incorporated in the standard contract is wide. Most importantly Exclusion clauses are the main sources of in standard contract. Exclusion clauses usually written down that say that one party to the contract will not be responsible for certain happenings. For example, if you join a gym, it is common for the contract to say that the gym owner will not be responsible if you are injured while exercising. If you arrange to park your car in a public carpark for a fee, the owner will often seek to include in the contract a provision that they will not be responsible for damage to your vehicle or theft of goods from it, while

An exclusion clause will generally not cover a breach which occurs outside the 'four corners' of a contract, such as where a trader does something that was not authorized by the contract. The most common type of unfair terms are exclusion clauses whereby one party seeks to exclude their liability arising under the contract. Other examples of unfair terms include penalty clauses where a party specifies an amount payable on breach of contract which is out of proportion to the loss that the party would

If there is, then the type of liability arising is also important. Generally, there are two varieties of liability which Is strict liability that is liability arising due to a state of affairs without the party at breach necessarily being at fault and liability for negligence liability arising due to fault. The courts have a tendency of requiring the party relying on the clause to have drafted it properly so that it exempts them from the liability arising and if any ambiguity is present, the courts usually interpret it strictly against the party relying on the clause. Exclusion clauses are clauses, usually written down that say that one party to the contract will not be responsible for certain happenings. These clauses can be valid, as long as they have been properly included in the contract and are not contrary to law. To be properly included in the contract, the clause cannot be tacked on after the contract has been made. If there is a signed contract containing the clause, this will usually have the effect of including it. If there is no signed contract, but there are printed documents or signs posted stating the terms, these can be included in the contract if they are brought to your attention before the contract is made. There are some important obligations to a consumer that are placed on a trader and these are implied by statute into consumer contracts