Commercial Law: Legal Advice for Exclusion Clause and Contractual Remedies

Commercial law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Question 1. Provide Acme with legal advice so Acme can put in place an enforceable
exclusion clause that would be a term in each contract with their customers.............................1
Question 2...................................................................................................................................4
CONCLSION...................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Commercial law is considered to be as a body of law which in turn tends to regulate the
conduct of the merchant, individual person and businesses who in turn are engaged within trade,
commerce and sales of the products and services. This study will focus on providing Acme with
legal advice so that, Acme can place exclusion clause which helps in terming each contract with
the customers. Moreover, it will also effectively evaluate the parties to the contract in case of
Cathy and Josh. It will also examine if Cathy and Josh are entitled to any remedy against the
supplier of the vinyl planks, Style zone Flooring.
MAIN BODY
Question 1. Provide Acme with legal advice so Acme can put in place an enforceable exclusion
clause that would be a term in each contract with their customers.
Issue: In this specific case scenario, Acme ply limited tends to run a car park within the
city. Moreover, Acme Company want to have an exclusion clause which in turn tends to apply to
all the contracts within the carpark customers. This is to ensure that, Acme Company is not liable
if the car of the customer is damaged or stolen when the car has been parked in the Acme
carpark. The key procedure for the customers in order to use the Acme car park. The carpark
customer tends to receive a small ticket which has been generated from the machine which is
situated at a boom gate at the entrance to the car parking. The customer also tends to pay for their
car parking by effectively putting in their ticket into that machine and also paying with the cash /
credit card 1. In order to exit the car parking area, the customers need to insert paid for ticket in to
the system. Moreover, the customers can also speak to their employees by pressing the button on
payment machine or ticket dispensing machines.
Exclusion clause is referred to as one of the most effective term which in turn tends to limit
the liability of one of the parties. It tends to state that, a party who is within the exclusion
contract tends to have no liability when the contract was breached. It is useful in seeking with the
range of various remedies which can be appropriately claimed2. It is very useful for the parties
1 Mellick & Newlyn, (2015). Contract Law.
2 McKendrick & Liu, (2015). Contract Law: Australian Edition. Macmillan International Higher
Education.
1

because it helps in limiting the liability of the person which has been limited to the specific listed
conditions, situations or circumstances. Exclusion clause can be effectively inserted within the
contract which tends to aim at limiting or excluding individual’s liability for breach of
negligence or contract. Moreover, the party can only rely on such clauses only if:
 It tends to have been incorporated within the contract.
 It has been effectively made clear with appropriate conditions.
 It adheres with the unfair contract term act, 1977.
If the party wants to effectively rely within the exclusion clause, it is considered to be duly
important to be a valid contract between the parties. Moreover, an exclusion clause can only be
incorporated within the contract by categorizing into 3 different ways which mainly includes
signature, notice and course of dealing.
Signature
In case the plaintiff tends to sign a document which has contractual effect and also contains an
exclusion clause. This way it tends to automatically form a part of the contract and the parties
within the contract are bound by certain prescribed terms 3. This contract is considered to be so
even that, if the other party has not appropriately read the document and whether the other party
has understood the conditions or not. However, the party will not be binded by the exclusion
clause if the other party has orally altered related with the exclusion clause.
Notice
The exclusion clause is likely to be contained within the unsigned document within the notice.
The reasonable notice associated with the exclusion clause must be given. However, the court
will not impose any exclusion law if the party within the contract has affected by that and was
also fully aware about the existence related with the sufficient notice 4. Moreover, in order to
eliminate the inadequacy of the notice, then it should be contained within the contractual
document that tends to effectively acknowledge payments like receipts. The notice has been
3 Klee, (2015). International construction contract law (No. s 1). Wiley-Blackwell.
4 Cartwright, (2016). Contract law: An introduction to the English law of contract for the civil
lawyer. Bloomsbury Publishing.
2