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exclusion clauses - Coggle Diagram
exclusion clauses
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incorporation
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otherwise, it cannit form part of the contract
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main prupose rule
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fundamental breach
traditionally, such a seripus breach entitled the innceont aprty to repudiate contract, claim damages, so its also called a repudiatory breach
before rjkection, the fundamentla breahc doctrine meant that an exemption clause is not effetcive if excludes liability for fundamental breach because no contract could have neen validly formed at the beginning to recognise a fundamental breach
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exclusion of neglignece
a contract may include exemption clauses that exclude negligent liabilities other than those involving personal injury or death
s65 cra 2015
an exclusionor limitaition clasue that excludes or restricts loability for death or personal injiry resulting from neglgince is void
UCTA s2
negligence
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RULES IN CANADA STEAMSHIP LINES V KING to detremine whetehr a clause excluding neglgience is effecetiv3e or not
does teh clasue contin express langauge exempting a eprosn from the consequence of the negligence - if so , effect must be given to it
if there is no express ref to neglgience, the courts miust consdier whether the words used are wide enough, in their oridnary menaing to cover it
if the words used wide enough, court must then consdier whether liability mayb be based on some ground other than negligene
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rules of construction
construction
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factors thgat the court will consider tos ee whether the a breach can be copvered by an exclusion cla7se
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the general rule si that an exclusion clause must only be cosntrued on its natural and ordianry meaning - see george mitchell v finney lcok seeds
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interpretation
whetehr an exclusion clasue is effective depends on teh itnention of the parties atthe time the contract was formed, menaingt that particular attention will be paid to the language that the parties used to express their intent
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oral agreement
if the exclusion claus eis inconsistent with an oral agreement, the clause will not apply
cra 2015
under the cra 2015, all exclusion clauses which attempt to exclude liabiluity for fundamental breahc fo consumer contracts will either be automatically void or subject to a test of fairness
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