LAWS1000 Chapter Notes - Chapter 10: Actual Notice, Constructive Notice, Contra Proferentem
Document Summary
Week eleven exempting, excluding and limiting terms. An exemption clause is a term of the contract inserted to exclude or limit the liability of one or more of the parties (cid:272)alled the (cid:862)p(cid:396)ofe(cid:396)e(cid:374)s(cid:863). If effective, it can protect that party from the consequences of both breach of contract and tortious conduct that he or she might commit while performing the contract. Exemption clauses come in two forms: excluding terms and limiting terms. An excluding term (an exclusion clause) is one that completely e(cid:454)(cid:272)ludes o(cid:374)e pa(cid:396)t(cid:455)"s lia(cid:271)ilit(cid:455). It can exclude liability either absolutely or if some condition is not met. A limiting term (a limiting clause) merely limits liability to a particular fixed or determinable monetary amount. Standard form contracts are those that have been drafted by the party in the superior bargaining position indicating the terms on which he or she is prepared to deal. Before an exemption clause will be enforced, the courts demand clear proof that:
