Exclusion and limitation clauses allow businesses to manage contractual risk by capping or removing liability for specified events. Used correctly, they can protect your business from costly disputes. However, not all exclusion clauses are enforceable, and courts will scrutinise how they are drafted and communicated. This article will explain some of the instances in which you can and cannot use exclusion clauses. It will also explore what a court might expect of you to uphold your exclusion clauses.<\/p>\n\n\n\n
Exclusion of liability is a contractual term stating you will not be liable to pay compensation if a certain event occurs. You usually need to make contract terms with clear wording. If a term is particularly onerous, you should bring this to the other party’s attention. If not, you may not be able to enforce it. Provided that both parties freely agree to the contract, an exclusion clause<\/a> will usually be binding. In fact, exclusion clauses are common in certain types of contracts, including consumer contracts and commercial contracts. <\/p>\n\n\n\n A limit on liability works in a similar way, but instead of completely excluding your liability, it instead places a cap on the amount of compensation that you could be due to pay. <\/p>\n\n\n\n While exclusion clauses are generally valid, there are some instances where you will not be able to exclude liability. For example, you cannot exclude liability for:<\/p>\n\n\n\n While you cannot completely exclude liability for certain things, you can cap your liability if you use clear wording.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nWhen Can I Not Exclude Liability?<\/h2>\n\n\n\n
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