GNG 4170 Lecture Notes - Lecture 1: Fundamental Breach, Syncrude, Liquidated Damages
4 May 2016
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Limits the liability of one of the parties. If there is a breach of contract, a party is entitled to reasonably foreseeable damages. This clause may remove some of these damages wit no liability. These clauses can be about the kinds of damages and/or a cap on liability (max amount). In this case the exemption clause is both about kinds of damages and cap on liability (only liquidated, and of that only m). Courts have had tension with these two ideas. Give development of relevant case precedence: harbitt"s plastacine, uk called fundamental breach doctrine, so if fundamental breach is done, that party can"t rely on the exemption clause. England by : photo production ideas here are reflected in hunter vs. syncrude, decision of supreme. The majority of supreme court took true construction approach, means the focus is only on the exemption clause. It no longer matters whether a breach is fundamental or not.
