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Exclusion Clauses and Liability

   

Added on  2020-04-07

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1Cover PageName of the studentStudent IDWord count
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2ContentsSolution.......................................................................................................................................................3Issue........................................................................................................................................................3Applicable law.........................................................................................................................................3Application of law...................................................................................................................................4Conclusion...............................................................................................................................................5Reference List.............................................................................................................................................6
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3Solution IssueWhether Yiming can sue the Show organizers successfully for his injuries?Applicable lawWhen any contract is made by the parties then it is very necessary that the main contractelements that are offer, acceptance, capacity, legal intention and consideration must be complywith. When a valid contract is made then the terms of the contract are binding in nature and theparties must comply with the same.1One of the most important terms that are normally found in the contract is exclusion clauses.Exclusion clause is a term which is a integral portion of a contract with the consent of both theparties. The main aim of the exclusion clause is to exclude or limit the liability of one of theparties to the contract on the occurrence of an event that it is mortally decided by the partiesresulting liabilities of one of the party to the contract and is rightly held in British Crane Hire vIpswich Plant Hire2.However, because of the presence of the limitation/exclusion term suchliability is limited or excluded at the permission of other party.3But, if any exclusion clause is made part of the contract without bringing the same in theknowledge of the other party then the clause has no validity. It is compulsory on the party who isincorporating the clause to bring the same in the knowledge of the other party with reasonablemeans in order to make the contract binding upon the parties. It is necessary to bring the noticeof the clause prior to the establishment of the contract and is rightly held in Olley v MarlboroughCourt4.5An exclusion clause is incorporated in a contractual document by few methods. Such as:6i.When the contract are signed by the parties – When the parties enter into acontractual relationship by signing the contract and such contract contains anexclusion clause, then, such exclusion clause is binding upon the parties regardless ofthe fact whether such clause is read by the parties or not. In L'Estrange v Graucob7, asales agreement was signed by the parties which contain an exclusion clause. Theplaintiff did not read the clause. However, the clause was held to be valid in law.1 Gillies, P (1988)Concise Contract Law. Federation Press.2British Crane Hire v Ipswich Plant Hire [1974].3Rainey S (2013) The Law of Tug and Tow and Offshore Contracts, CRC Press. 4Olley v Marlborough Court [1949].5 Rainey S, n2.6 Adams M (1997) Australian Essential Management Law, Routledge,. 7L'Estrange v Graucob [1934].
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