ABSTRACT

This chapter deals with situations where there is an attempt to exclude or limit liability for breach of contract by including exclusion or limitation clauses in a contract. It considers more broadly ‘unfair’ terms in consumer contracts following the Consumer Rights Act 2015. The chapter examines an area governed by both common law and statute. The approach of the courts to exclusion and limitation clauses has not traditionally been to assess them directly on their merits. The existence of stricter statutory controls over exclusion and limitation clauses has encouraged the courts to take the line that there is no need for the rules of construction to be used in an artificial way. Exclusion and limitation clauses are, to some extent, controlled at common law by the rules of incorporation and construction. Clauses limiting liability for other losses caused by negligence must satisfy the requirement of reasonableness.