CHAPTER 4.4 Content of Contract.ppt

Where a clause is duly incorporated into a contract

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Where a clause is duly incorporated into a contract, the court will proceed to examine the words used to see if the clause covers the breach and loss which has actually occurred. The main rules of interpretation used by courts are as follows: - Strict Interpretation The contra proferentum rule Repugnancy The clause must be comprehensively drafted to cover the liability Four Corners or Deviation Rule 83
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Strict Interpretation An exempted clause will be effective only if it covers the kind of liability which has in fact arisen A clause, for example, which excludes liability for a breach of warranty will not provide protection against liability for a breach of condition. (Baldry v Marshall ) 84
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Hollier v Hambler Motors (1972) A workshop had by previous course of dealings with the claimant excluded liability for damage to vehicles by fire. However, it did not state if this included both by accident or negligence.
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  • Spring '18
  • Law

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