Question 1

In relation to exclusion clauses there is a presumption of equality of bargaining power in commercial contracts.

Accepted Answer

This is true. Courts generally assume that parties to commercial contracts negotiate on a relatively equal footing and are knowledgeable about the terms and conditions included in their agreements, including exclusion clauses. However, the presumption of equality may be challenged in certain circumstances, such as where one party has significantly greater bargaining power or the exclusion clause is particularly onerous or unexpected.

Question 2

Which of the following is NOT an approach to interpretation of an exclusion clause?
A)An exclusion clause will be strictly construed against the party relying on it.
B)An exclusion clause will not apply if it produces harsh consequences.
C)An exclusion clause will not apply to actions outside the contract.
D)An exclusion clause will be interpreted by construction of the contract as a whole.

Accepted Answer

The principle that an exclusion clause will not apply if it produces harsh consequences is not a recognized approach to the interpretation of exclusion clauses. The interpretation typically focuses on the strict construction against the party relying on it, relevance to actions within the scope of the contract, and the context of the contract as a whole, rather than the harshness of consequences.

Question 3

Why was the council held to be liable in The Council of the City of Sydney v West (1965)114 CLR 481?
A)There was an exclusion clause in the contract.
B)The car was extremely valuable.
C)Of the fundamental breach of the contract.
D)The breach was outside the terms of the contract.

Accepted Answer

The answer of Why was the council held to be...

Question 4

Courts traditionally interpreted exclusion clauses contra proferentum,or against the interests of the person seeking to rely on it.Why did the courts take this approach,and to what extent has it been displaced by alternative approaches?

Accepted Answer

The answer of Courts traditionally interpreted exclusion clauses contra proferentum,or...

Question 5

If a document containing an exclusion clause is not signed,the clause will not apply.

Accepted Answer

The lack of a signature does not necessarily mean that the exclusion clause will not apply. Whether or not the clause is enforceable will depend on various factors, such as the nature of the transaction and whether the clause was properly communicated to the other party.

Question 6

In order for a party to rely on an exclusion clause in a contract,what must they show?

Accepted Answer

The answer of In order for a party to rely...

Quiz 13: Terms of the Contract

In relation to exclusion clauses there is a presumption of equality of bargaining power in commercial contracts.

Which of the following is NOT an approach to interpretation of an exclusion clause?

Why was the council held to be liable in The Council of the City of Sydney v West (1965) 114 CLR 481?

Courts traditionally interpreted exclusion clauses contra proferentum,or against the interests of the person seeking to rely on it.Why did the courts take this approach,and to what extent has it been displaced by alternative approaches?

If a document containing an exclusion clause is not signed,the clause will not apply.

In order for a party to rely on an exclusion clause in a contract,what must they show?