An exemption clause is a contractual term that purports to limit or exclude a liability that would otherwise attach to one of the contracting parties. The obligations affected by an exemption clause may be contractual or tortious. This lecture looks at the exclusion clause which completely excludes liability whereas the limitation clause only seeks to limit liability to a specific sum. Both are known as exemption clauses.
After listening to this lecture and your course material you should be able to understand the common law rules relating to exemption clauses, and in particular:
how an exemption clause will be incorporated into a contract;
how an exemption clause will be construed;
the question of exclusion of fundamental breach;
other common law factors that may have an impact on exclusion of liability.
L'Estrange v Graucob [1934] 2 KB 394, CA
Parker v South Eastern Railway (1877) LR 2 CPD 416, CA
Olley v Marlborough Court Hotel (1949) 1 KB 532
Thornton v Shoe Lane Parking [1971] 1 All ER 686, CA
Thompson v LMS [1930] 1 KB 41, CA
Chapelton v Barry UDC [1940] 1 All ER 356, CA
Interfoto v Stiletto [1988] 1 All ER 348, CA
Spurling v Bradshaw [1956] 2 All ER 121, CA
White v Warwick [1953] 2 All ER 1021, CA
Houghton v Trafalgar Insurance [1953] 2 All ER 1409, CA
Ailsa Craig v Malvern [1983] 1 All ER 101, HL
R & B Customs Brokers v UDT [1988] 1 All ER 847, CA
Thompson v Lohan [1987] 2 All ER 631, CA
Woodman v Photo Trade Processing (1981) 131 NLJ 933
Smith v Eric Bush [1989] 2 All ER 514, HL
An exemption clause is a contractual term that purports to limit or exclude a liability that would otherwise attach to one of the contracting parties. The obligations affected by an exemption clause may be contractual or tortious. This lecture looks at the exclusion clause which completely excludes liability whereas the limitation clause only seeks to limit liability to a specific sum. Both are known as exemption clauses.
After listening to this lecture and your course material you should be able to understand the common law rules relating to exemption clauses, and in particular:
how an exemption clause will be incorporated into a contract;
how an exemption clause will be construed;
the question of exclusion of fundamental breach;
other common law factors that may have an impact on exclusion of liability.
L'Estrange v Graucob [1934] 2 KB 394, CA
Parker v South Eastern Railway (1877) LR 2 CPD 416, CA
Olley v Marlborough Court Hotel (1949) 1 KB 532
Thornton v Shoe Lane Parking [1971] 1 All ER 686, CA
Thompson v LMS [1930] 1 KB 41, CA
Chapelton v Barry UDC [1940] 1 All ER 356, CA
Interfoto v Stiletto [1988] 1 All ER 348, CA
Spurling v Bradshaw [1956] 2 All ER 121, CA
White v Warwick [1953] 2 All ER 1021, CA
Houghton v Trafalgar Insurance [1953] 2 All ER 1409, CA
Ailsa Craig v Malvern [1983] 1 All ER 101, HL
R & B Customs Brokers v UDT [1988] 1 All ER 847, CA
Thompson v Lohan [1987] 2 All ER 631, CA
Woodman v Photo Trade Processing (1981) 131 NLJ 933
Smith v Eric Bush [1989] 2 All ER 514, HL
