Business and Corporate Law: Validity of Exclusion Clause in Contracts

Running Head: BUSINESS AND CORPORATION LAW 0
Business and Corporate Law
9/22/2018
Student’s Name

Business and Corporate Law
1
Contents
Issue.................................................................................................................................................2
Rules................................................................................................................................................2
Application......................................................................................................................................3
Conclusion.......................................................................................................................................3

Business and Corporate Law
2
Issue
The issue involved in the case is to check that whether Jenny can sue Hunter Busline for the
damages occurred to her or not.
Rules
Contracts are valid when they consist all the necessary and required elements such as offer,
acceptance, consideration, and intention of the parties in the case to develop a contractual
relationship. According to the provisions of contract law, a contract can be either in written form
or in oral form (Find Law, 2018). When parties sign a contract in writing or become agrees to
fulfill the promises made to, each other in verbal mode, then a contract exists there. Under a
valid contract, both the parties are required to fulfill their promises and obligations. However, the
exclusion clause is another aspect of Contract Law, which is detailed as below.
Exclusion Clause: - An exclusion clause under a contract is a prior statement, which limits the
liability of either party in a contract. It is a way out by choosing that any of the party can mention
the limit up to, which the same can be held liable in case of any future, disputes (Legal Services
Commission of South Australia, 2018). An exclusion clause in a contract can be considered as
protection which law provides to the parties. It is the general rule in the area of exclusion clause
that the same must be incorporated in the contract at the time of developing the contract or
before the same (Taylor and Taylor, 2017).
The decision was given in the case of Thornton v Shoe Lane Parking [1971] 2 WLR 585 is
significant. In this case, the claimant received the ticket for a car park when he put the money
into the machine. The ticket stated that contract of parking is subject to the terms and conditions