Terms(2) rules on incorporation and extra rules

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  • Created by: TashaChlo
  • Created on: 06-12-14 22:55

                                       express terms and exclusion clauses

exclusion clause: a term that tries to exclude liability for breach of a contractual term

limitation clause: a term that tries to limit liability for breach rather than exclude liability altogether

Common law (step one)

the rules on incorporation apply

the term must be a part of the contract – it must be agreed

if a term is not incorporated then it ends there

incorporation (agreed)


if a party has signed a contract then that party is bound by all the terms within that contract, whether or not the party has read the contract or not

L'estrange v Graucob

bought vending machine but did not read term which said if it didn't work then she couldn't claim before signing


an exclusion/limitation clause is set out, or referred to in a document and then handed to the party when the contract is made and that the party either knew or should have known that the document contained such a clause

degree of notice: Chapleton v Barry UDC

exemption clause was on back of ticket – not incorporated as not enough attention drawn to it

C/W Thomson v LMS Railways

illiterate passenger could not read exemption clause and was injured, term was incorporated as the train station had taken all the steps to bring the clause to the attention of the reasonable person

time of notice: Thornton v Shoe Lane Parking

sign excluding car parks liability to damage caused to cars was…


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