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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.
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.
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