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The law of contract - Essay Example

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The law of contract

Ans. According to Law of Contract exclusion clause in the body of the contract between two parties will be a term incorporated in the contractual text to lessen and restrict the liability of one or the other party to the contract.
Whereas, the Limitation Clause instead of excluding liability of a party to a contract tends to limit the liability as the name suggests. An Exclusion clause will only be enforceable if it is validly incorporated in the text of the contract and it is clear and not ambiguous in its meaning, there should not be any statutory hindrance over it.
(a) It should be a contained in the contract in a clear and unambiguous manner and there should be no confusion regarding the meaning of the clause, in addition to that both the parties must be aware about the inclusion of the clause in the text of the contract.
Ans. ...
In comparison to an Exclusion clause, a Limitation Clause is more likely to be enforced.

4. What are the different ways in which terms (exclusion clauses) may be incorporated into a contract
Ans. The different ways in which terms(exclusion clauses) may be incorporated into a contract are the following :
(a) It should be a contained in the contract in a clear and unambiguous manner and there should be no confusion regarding the meaning of the clause, in addition to that both the parties must be aware about the inclusion of the clause in the text of the contract.
(b) If the language or meaning of the Exclusion clause is not clear then in that case the party that is going to affected more by it should be forewarned before making of the agreement.
(c) Standard Terms and Conditions according to Trade practice should be incorporated in to the contract.
(d) An Exclusion clause can be incorporated in the contract by showing similar regular and consistent dealings between the parties in the past.

5. What is meant by the contra proferentum rule
Ans. By Contra proferentem rule it means that if there is a clause in the contract that carries more than one meaning and is unambiguous and not easy to interpret than in that case that unambiguous and confusing term will be taken against the party that forced its inclusion or the party who drafted the contract and incorporated the said term. In other words the term will be read in favour of the second party that didn't insist on its inclusion in the body of the contract.
6. What are the main differences between the provisions of the Unfair Contract Terms Act 1977 (UCTA) and Unfair Terms Consumer Contracts Regulations 1999
Ans. The main difference between the provisions of the ...Show more


Ans. The Courts can apply the test of incorporation and construction to determine whether or not a statement is a term. It is important that the application of the test of reasonableness should not be considered until it has been decided that, applying the tests of incorporation and construction, the exemption or limitation clause in question forms part of the contract and covers the events, then, however reasonable the clause, it will not apply…
Author : matt35
The law of contract essay example
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