what are exclusion clauses?
they are express terms of a contract which attempt to remove or restrict the parties liability in the event of a breach of contract.
Exclusion clauses are provisions in a contract that limit or exclude one party’s liability in case of breach or negligence. These clauses are commonly found in commercial contracts, insurance policies, and other types of agreements. They aim to reduce the risk of the party who drafted the contract by transferring some of the risks to the other party.
Exclusion clauses can take many forms – they can limit the types of losses or damages that the party will be responsible for, or they can exclude certain events or circumstances that would otherwise be covered under the contract. For example, an exclusion clause in a car lease agreement may state that the lessor is not liable for any damage caused by the lessee’s negligence.
It is important to note that exclusion clauses are subject to the Unfair Contract Terms Act 1977 (UCTA) and the Consumer Rights Act 2015 (CRA), which regulate unfair terms in contracts between businesses and consumers. These acts aim to protect consumers from being unfairly disadvantaged by exclusion clauses that are unreasonable or hidden in small print.
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