Terms(2) rules on incorporation and extra rules
- 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)
signature
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
notice
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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