Contract Law Essay Example | Topics and Well Written Essays - 1500 words

Contract Law - Essay Example It becomes sufficient incorporation if the other party knows the existence of the clause Wishart (2005, p. 78). The exclusion should also conform to the relevant statutes that are the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulation 1999. Legislation The legislations that govern the limitation clauses are Unfair Terms in Consumer Contracts Regulation 1999 and the Unfair Contract Terms Act 1977. Exclusion clause 1. Urban Farm Products Limited does not restrict liability for damage, loss, death, or injury caused by its negligence. 2. URBAN FARM PRODUCTS LIMITED SHALL NOT BE LIABLE TO VISITORS FOR LOSS OR DAMAGE OF PERSONAL BELONGINGS AND INJURY DUE TO THE VISITORS NEGLIGENCE DURING THE VISIT. Explanatory notes Clause 1 limits the ambition of the exclusion clause which is essential to ensure that the exclusion of liability clause does not fail or is rendered unenforceable by operation of section 2(1) of the Unfair Contract Terms Act 1977. Section two (1) of the Unfair Contract Terms Act provides that exclusion of liability in negligence cannot be restricted in the course of business for personal injury or death by a provision in the contract. It becomes unreasonable to restrict the liability in negligence of Urban Farm Products Limited, clause 1 deals with this element. The liability of Urban Farm Products Limited cannot be restricted. ... The Unfair Contract Terms Act 1977 at section 11 provides for the prerequisites of reasonableness; it provides that for a term to be included, it should be a fair and a reasonable one in relation to the circumstances known or ought to be known. Subsection two goes ahead to clarify the guidelines applied in the determination of reasonableness. Subsection (4) provides that where the provision seeks to exclude liability but seeks to limit the liability, the court should look at it from two points: the extent of insurance cover for the party to relying on the exclusion clause and the resources available to meet the liability. Subsection (5) states it is up to the party wants to rely on the clause, to prove sufficient notice of the existence of the clause. The party intending to rely on the exclusion clause should make sure they did enough to draw attention to that clause: (1) There should be proper and sufficient notice where the contract has an exclusion clause incorporate into it. If t he exclusion clause sits at the back of the document, a note to that effect should be in front of the document. (2) The other must be aware of the exclusion clause before entering into the contract. (3) The notice provided should be reasonably sufficient. Reasonableness and sufficiency depend on the parties' situation and the circumstances. In its decisions on matters of exclusion clauses, the courts have held that attention be brought to the existence of these clauses by clear words on the contract. Clause 2 is the proper exclusion clause and aims at limiting the scope of Urban Farm Products Limited liability by the exclusion of aspects of loss or damage. Section 2 (2) provides that liability for negligence can be