CONTRACT LAW EXCLUSION CLAUSES REVIEW NOTES.

CONTRACT LAW REVIEW NOTES
EXCLUSION CLAUSES
Definition: Any clause in a contract or term in notice which functioned as to
restrict, exclude or modify a liability from party involved in the contract.
Control of exclusion clauses by court: To protect the interest of the party
who relied upon the exclusion clauses as there is a tendency from the
maker of the exclusion clauses to insert unfair terms
How?
Incorporation of exclusion clauses

(signing)
-By signing a written document

(not signing)
-By notice
-By course of dealing

BY NOTICE
• Notice must be given before or at the time of a contract formed.
Olley v Marlborough
The Court held that the contract has entered into at the reception
counter before the plaintiffs have noticed the exclusion clauses in
their room. The guest does not see them after they have been
accepted as a guest. Notice must be given before or at the time of a
contract formed. Thus it was the exclusion clauses is not incorporated
into the contract.

• Notice must be in documents
Thornton v Shoe Lane Parking

The court held that a ticket can be no more than a voucher or receipt
for the money that has been paid. To be effectively incorporated, the

, exclusions clauses MUST be in document where contractual terms
are expected and not merely found in a receipt. Thus the exclusion
clauses is not incorporated into the contract.

• Exclusion clause must sufficiently brought to another part

Ie, bold the exclusion clauses (something extra done to make it
obvious)



Henderson v Stevenson