The Law On Exclusion Clause Essay

The Law On Exclusion Clause Essay

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An exclusion clause is a term of a contract which either limits the liability for a specific loss or injury; or the liability of one or both parties within a contract. The law on exclusion clause applies only business to business or consumer to consumer.

The first way an exclusion clause is regulated is through incorporation by writing. Stuart signed a standard contract agreeing to buy six Land Rover Discovery cars from Keith at a price of £80,000. This is similarly identified in the case of L 'Estrange V Graucob [1934] in which Miss L 'Estrange signed a contract to buy a cigarette machine from the company Graucob. From this comparison it is noted that Stuart is bound by the contract and any injury or damages caused to the cars is not to be the fault of Keith 's, because Stuart has signed the contract. This is because the incorporated written exclusion clause regulates this in the written contract.

However, if the cars were damaged because of Keith’s negligent when dealing with Stuart business to business, Keith would be held responsible for this action. Since Stuart has entered into an agreement with Keith it does not matter whether he had read the exclusion clause. Or the fact that Stuart did not either see the exclusion clause sign at Keith’s dealership. This was incorporated by notice but because Stuart signed the contract it is not important that he was aware of it. For example, the case of Parker v South Eastern Railway [1876] suggests that Mr Parker failed to read the exclusion clause on the ticket he received when depositing his bag. Or in the case of Olley v Marlborough Court Hotel [1949] when the couple Mr and Mrs Olley 's luggage and valuables were robbed when not present in the hotel room.

Interestingly, Stuart ...

... middle of paper ...

... if something went wrong. Stuart aware of this cannot sue Keith for the faulty car. Similar conclusions can be drawn from the case of George Mitchell v Finney Locks Seeds [1983] where the clause excluded any loss or damage from the use of the seeds.

To conclude whether Tiff is correct about suing Keith for the negligence of the car, Stuart is unable to claim legal action against Keith for the faulty engine and gearbox. Stuart cannot take Keith to court because he agreed to buy the cars in the first place and signed the contract. Stuart may not necessarily have read the exclusion clause should have been aware of it anyway. Therefore, the written document indicates that there is no point for Stuart to see the exclusion clause on a sign. Although, Stuart is unable to sue Keith for the car. He can still sue for the personal injury due to Keith’s negligence.

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