Understanding Exclusion Clauses in Contracts: Ensure Validity and Fairness

what does an exclusion clause need to be?

it needs to be brought up to notice sufficiently before hand and have used a lot of effort to bring it to the other parties attention (thornton v shoe lane parking ltd)

An exclusion clause is a legal provision in a contract that seeks to exclude or limit the liability of one or both parties in case of a breach of contract or other types of loss or damage. For an exclusion clause to be valid and enforceable, it must meet certain requirements:

1. Be clearly worded: The exclusion clause must be stated in clear and unambiguous language that is easy to understand. This ensures that both parties are aware of the terms and can agree to it.

2. Be brought to the attention of the other party: The other party must be made aware of the exclusion clause and its implications before entering into the contract. This can be done by highlighting the clause or providing a separate notice or document.

3. Be reasonable and not unfair: The exclusion clause must not be unfair or unreasonable, and should only limit liability for specific circumstances. If the clause is overly broad or restricts the other party’s rights excessively, it may be deemed unenforceable.

4. Not violate any statutory provisions: The exclusion clause must not violate any statutory provisions or public policy. This means that it cannot exclude liability for personal injury or death arising from negligence, for example.

Overall, the exclusion clause must be fair, reasonable and transparent, and should not undermine the basic purpose of the contract. It is important for parties to read and understand the terms of the contract before signing, and seek legal advice if in doubt.

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