Scribd Logo
Upload

Welcome to Scribd!

  • 127 views

    Contract II Law 486 Tutorial

    Uploaded by

    Aimi Iryani
    The document discusses exclusion clauses in contracts and how they can be incorporated or interpreted. It provides examples from case law. Specifically, it addresses: 1) Exclusion clauses are terms that limit liability or performance, and can be incorporated through notice, course of dealing, or signing a written document. 2) Signing a document generally binds a party to its terms even if not read, as seen in L'Estrange v F Graucob Ltd regarding a faulty vending machine. 3) Fraud or misrepresentation can prevent enforcement of a clause, as in Curtis v Chemical Cleaning regarding a stained wedding dress where the scope of the clause was misrepresented. 4) Interpretation

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Contract II Law 486 Tutorial

    Uploaded by

    Aimi Iryani
    127 views2 pages
    The document discusses exclusion clauses in contracts and how they can be incorporated or interpreted. It provides examples from case law. Specifically, it addresses: 1) Exclusion clauses are terms that limit liability or performance, and can be incorporated through notice, course of dealing, or signing a written document. 2) Signing a document generally binds a party to its terms even if not read, as seen in L'Estrange v F Graucob Ltd regarding a faulty vending machine. 3) Fraud or misrepresentation can prevent enforcement of a clause, as in Curtis v Chemical Cleaning regarding a stained wedding dress where the scope of the clause was misrepresented. 4) Interpretation

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses exclusion clauses in contracts and how they can be incorporated or interpreted. It provides examples from case law. Specifically, it addresses: 1) Exclusion clauses are terms that limit liability or performance, and can be incorporated through notice, course of dealing, or signing a written document. 2) Signing a document generally binds a party to its terms even if not read, as seen in L'Estrange v F Graucob Ltd regarding a faulty vending machine. 3) Fraud or misrepresentation can prevent enforcement of a clause, as in Curtis v Chemical Cleaning regarding a stained wedding dress where the scope of the clause was misrepresented. 4) Interpretation

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    127 views2 pages

    Contract II Law 486 Tutorial

    Uploaded by

    Aimi Iryani
    The document discusses exclusion clauses in contracts and how they can be incorporated or interpreted. It provides examples from case law. Specifically, it addresses: 1) Exclusion clauses are terms that limit liability or performance, and can be incorporated through notice, course of dealing, or signing a written document. 2) Signing a document generally binds a party to its terms even if not read, as seen in L'Estrange v F Graucob Ltd regarding a faulty vending machine. 3) Fraud or misrepresentation can prevent enforcement of a clause, as in Curtis v Chemical Cleaning regarding a stained wedding dress where the scope of the clause was misrepresented. 4) Interpretation

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    The issue in this situation is whether the exclusion clause in the 2016 agreement made

    by West Bank could take effect.

    Exclusion clause is a term in a contract which intends to limit the scope of the
    performance of a contractual party or excluding one of the parties’ liability. There are 2 ways
    where exclusion clause could be inserted, which are through incorporation and interpretation.
    There are 3 ways for an exclusion clause to be incorporated into a contract, which are by
    notice, by course of dealing and by signature in a written document.

    By signing a written document, the party is bound by the contract despite not reading
    the contract. This rule can be seen in the case of L’Estrange v F Graucob Ltd. In this case, the
    plaintiff entered into a contract to purchase a cigarette vending machine with the defendant.
    The agreement included an exclusion clause which excluded all implied warranties and
    conditions. The plaintiff signed the contract despite not reading it and not knowing the
    existence of the exclusion clause. The machine became faulty and the plaintiff claimed that
    the defendant had breached the Sale of Goods Act for selling a machine that was not a
    merchantable quality. The court held that the terms in the contract would have a binding and
    effective effect towards the plaintiff once she has signed it, even if she has not properly read
    the contract.

    However, the party would not be bound by the signed document if there is existence
    of fraud or misrepresentation, this is seen in the case of Curtis v Chemical Cleaning &
    Dyeing Co Ltd, where the plaintiff went to send her wedding dress to be cleaned to the
    defendant’s laundry. During the purchase of the service, the shop assistant gave the plaintiff a
    receipt that contained an exclusion clause and asked the defendant to sign it. The shop
    assistant informed that the receipt would contain an exclusion clause of the defendant’s
    liability against certain risks such as damaged beads and sequins. However, the document
    actually read that the defendant would not be liable for all of the risks, not just beads. The
    plaintiff then signed the document after hearing the shop assistant’s information. The dress
    was returned and had a stain on it, in which the plaintiff then brought an action against the
    defendant. The court held that the defendant could not rely on the exclusion clause as the
    shop assistant had misrepresented the exact scope of the clause, which excludes the liability
    of the defendant for all risks and not limited to sequins and beads.

    For interpretation, the exclusion clause in the contract would be valid and enforceable
    if the term that is used to explain or state the clause is clear and specific in its meaning
    without any ambiguity. Thus, the court will interpret whether the clause is fair and reasonable
    which covers the breach that occurred. There are 4 ways where the court may use for
    interpretation, which are contra preferentum rule, effect of negligence, rule of law and rule of
    construction.

    The relevant method of interpretation in this situation is the effect of negligence. In


    this context, the court would look on whether the exclusion clause clearly seeks to exempt
    liability for loss caused by a party’s own negligence. In Canada Steamship Lines Ltd v The
    King, (insert facts), the court had laid out three rules for exclusion clause that exempts
    liability for negligence. Firstly, the clause must have stated clearly in the clause to exclude
    their liability. Secondly,

    You might also like