Exclusion Clause In Contract Law

1158 Words5 Pages
Contract Law Assignment – LW152 An exclusion clause is written into a contract to exclude one party's liability for breach of contract or negligence. However, a party in a contract may try to disguise an exclusion clause, even though the effect of a clause is to exclude liability. Why is this? This is because a company’s main goal is to make profits and if a consumer notices a clause in their purchase that restricts the company’s liability for a breach of negligence, the consumer will avoid this, thus reducing profits for the business. My chosen example of an exclusion clause is Ticketmaster’s Purchase Policy, Section 10. This Purchase Policy is designed to ensure consumers understanding of the purchase process on ticketmaster.ie. This Purchase…show more content…
An exclusion clause will be interpreted against the person who wrote it and who relies on the clause. If the Courts of Ireland allow an exemption clause to be incorporated into a contract then they must interpret it. The courts have ‘leaned against them,’ using strict and narrow interpretation. The Contra Proferentem rule discusses the manner in which judges interpret exclusion clauses which may also serve to limit their application. If the exempting provision is ambiguous and capable of more than one interpretation then the courts will read the clause against the party seeking to rely on it. Therefore, giving the benefit of any doubt to the person against whom it is directed. If there is any ambiguity read in favour of the person against whom the clause is being invoked, it may be deemed unlawful or unenforceable by a specific…show more content…
The purchaser argued that because S.14 of the 1893 Act implies a condition, this word “warranty” should be given its narrower meaning under the Act. The point was not decided by the Court of Appeal for Northern Ireland, however there are several clear illustrations of the rule in law.  Hollier v Rambler Motors (AMC) Ltd is a contract case, concerning the incorporation of terms in a contract and the contra proferentum rule of interpretation. Walter Hollier took his car to a repair shop, Rambler Motors. He visited this garage on four occasions in previous years. He had usually signed an invoice which said the "company is not responsible for damage caused by fire to customers’ cars on the
Open Document