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EXEMPTION CLAUSES - Coggle Diagram
EXEMPTION CLAUSES
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Two types:
- Exclusion clauses, and
- Limitation clauses.
When considering whether a party can rely on an exemption clause, you need to consider three main points:
- Incorporation (dealt with in toggle on Terms);
- Construction; and
- Statutory controls.
CONSTRUCTION:
- Would the clause, as it has been constructed, cover the breach?
- When interpreting the clause, the starting point for the courts is the ordinary meaning of the words.
- Any ambiguity is then construed/ interpreted contra preferentum i.e against the party seeking to rely on it.
Therefore, clear words must be used if a party is seeking to exclude liability resulting from its own negligence.