Law 5110 Lecture 18: Lecture 18
Document Summary
Once it is established that an exclusion clause is incorporated into the contract, the contract will be construed to see whether the clause covers the breach which has occurred. A less strict approach is taken to limitation clauses than to exclusion clauses: ailsa craig. Fishing co ltd v malvern fishing co ltd (1983) Under this rule, any ambiguity or uncertainty will be construed as narrowly as possible against the party purporting to rely on the clause. A term in a car insurance policy excluded the insurers" liability where an excessive. A car was involved in an accident when carrying six passengers, not the five for which is was constructed. The phrase excessive load" did not apply to the passengers in the car. They should have used precise wording to exclude liability for excessive passengers. Negligence particularly clear words are required where it is sought to exclude liability for negligence; Expressions such as howsoever caused", at customer"s sole risk" and .
