ABSTRACT

It is now common in contracts to see a party seeking to limit or remove liability with respect to particular aspects of that party’s performance of its contractual obligations. A party relying on an exemption clause that limits or excludes liability must from the start demonstrate that the clause is incorporated in the contract (by signature, notice or course of dealing) governing his performance of the contract and that it provides protection against the consequences of the breach of contract for which he is accused. Unfortunately if these considerations are established in favour of the person in breach, there are still several hurdles that must be overcome in order to establish the operability of the exemption clause.