MLL111 Lecture 6: Contract Week 6
Document Summary
*used to protect in one way or another, a person from what otherwise would be their liability. *they limit the liability of a party (exclude or limit). 2 pre-condition for an exclusion clause to be binding. Has to be part of the contract (term) Wide enough to cover the breach that has occurred. Can incorporate exclusion clause even with just a sign (car park sign, taxi stickers, airlines) The use of an exclusion clause is permissible (a legally binding contractual agreement). Only problem is when parties negotiate an exclusion clause during a contract (you can"t negotiate it needs to be initially imposed). It"s not that you can"t agree it"s because you are the weaker party. It"s because you think it won"t matter for you in the long term. New zealand shipping co ltd v am satterhwaite & co ltd (1975) ac 154.