What is an exclusion clause?
- AA term that limits or excludes one party's liability
- BA term that excludes a party from paying VAT
- CA clause allowing termination at any time
- DA term that excludes third parties from the contract
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What is an exclusion clause?
A pays B money to bet on shares using insider information, which is illegal. The bet never happens and A wants the money back. In Patel v Mirza, the Supreme Court held:
Pure economic loss caused by negligent acts is:
A surveyor values a modest house for a mortgage lender, knowing the buyer will rely on it. The report is negligent and contains a disclaimer. In Smith v Eric S Bush, the House of Lords held:
In R v Bow Street Magistrate, ex p Pinochet (No 2), the House of Lords set aside its own earlier decision because:
In the Harmonisatiewet judgment (1989), the Dutch Supreme Court held that Article 120 of the Constitution:
D grabs V's handbag so forcefully that V's hand is pulled down. Following R v Clouden, this can be:
Under the Corporate Manslaughter and Corporate Homicide Act 2007, an organisation is guilty if the way its activities are managed causes death and amounts to a gross breach of a duty of care, and:
Under Article 51 of the Charter of Fundamental Rights, the Charter binds member states:
Under Article 263 TFEU, a private applicant may challenge a regulatory act that does not need implementing measures if it is:
Answer: A · A term that limits or excludes one party's liability
Jurisdiction: general principle, found in most legal systems. Exclusion and limitation clauses restrict liability. They must be incorporated and are controlled by legislation, especially in consumer contracts.
Answer: D · A could recover the money, applying a policy-based approach to illegality
Jurisdiction: law of England and Wales. The court asks whether enforcing the claim would harm the integrity of the legal system, considering the purpose of the prohibition, other public policies and proportionality. Restitution here did not.
Answer: A · Generally not recoverable, with exceptions such as negligent misstatement
Jurisdiction: law of England and Wales. Courts generally refuse claims for pure economic loss from negligent acts, but allow them in special relationships, such as reliance on negligent advice (Hedley Byrne).
Answer: C · The surveyor owed a duty to the buyer, and the disclaimer failed the reasonableness test
Jurisdiction: law of England and Wales. The surveyor knew the buyer would rely on the valuation, which created a duty. Under UCTA, the disclaimer was not fair and reasonable for an ordinary house purchase.
Answer: C · One judge had links to a charity that was a party to the case
Jurisdiction: law of England and Wales. Lord Hoffmann was a director of a charity connected with Amnesty International, which had intervened. A judge with such an interest in a party's cause is automatically disqualified.
Answer: C · Prevents courts from reviewing Acts of Parliament against fundamental principles of law
Jurisdiction: Dutch law. The court found the Act conflicted with legal certainty but held that Article 120 barred it from testing statutes against unwritten principles as well as against the Constitution.
Answer: B · Robbery, because force was used on the person to steal
Jurisdiction: law of England and Wales. Clouden held that wrenching a bag from someone's grasp can be force on the person; whether the force is enough is a question for the jury.
Answer: D · The way senior management organised the activities was a substantial element of the breach
Jurisdiction: law of England and Wales. Section 1 focuses on management failures at senior level rather than one directing mind; the penalty is an unlimited fine, and individuals are not liable under the Act.
Answer: C · Only when they are implementing EU law
Jurisdiction: EU law. The Charter applies to member states only when they act within the scope of EU law, as interpreted broadly in Åkerberg Fransson.
Answer: A · Of direct concern to them
Jurisdiction: EU law. For regulatory acts not entailing implementing measures, direct concern suffices; for other acts addressed to others, the applicant also needs individual concern (Plaumann).
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