ABSTRACT
Once a contract is created attention turns to the contents and one of the distinctions that students find difficult to apply is the actual difference between contractual terms. Such terms are classified into a condition, warranty or innominate term (the latter category introduced in a case called Hong Kong Fir Shipping). Exclusion, or exemption clauses are merely specific examples of any number of generally unfair contract terms. In a sense, an exemption clause is no different from any other clause, in that it seeks to define the rights and obligations of the contracting parties. However, an exemption clause is a term that tries to exempt, or limit, the liability of a party in breach of the agreement. Unfair Contract Terms Act 1977 represents the statutory attempt to control exclusion clauses. In spite of its title, it is really aimed at unfair exclusion/exemption clauses, rather than contract terms generally.
