Exclusion Clauses

Exclusion Clauses

1. Definition

   • Terms in a contract that exclude or limit liability for a breach of the contract

2. Is the term incorporated in the contract (1) - a party is bound by a written agreement if it has been signed

   • L'Estrange v Graucob

3. Is the term incorporated in the contract (2) - the party subject to the exclusion clause must know of it at the time the contract was made

   • Olley v Marlborough Court Hotel

4. Is the term incorporated in the contract - the ticket cases

   • Combination of notices, tickets and other document may make it difficult for someone trying to rely on an exclusion clause to prove that it was brought to the attention of the other party
     • Chapelton v Barry Urban District Council
     • Thompson v London, Midland and Scottish Railway Co.
     • Thornton v Shoe Lane Parking Ltd

5. Is the term incorporated in the contract (3) - is the term incorporated as a result of previous dealings between the parties?

   • McCutcheon v David MacBrayne Ltd

6. The 'contra proferentem' rule

   • Transocean Drilling UK Ltd v Providence Resources plc