Part III Particular Contractual Provisions, 21 Exemption Clauses and Unfair Contract Terms

Subject(s):

Exemption from liability — Formation of contract — Interpretation of contract — Performance of contract

This chapter focuses on exemption clauses. Particular attention is placed on the detailed rules of construction still applicable to exemption clauses. Moreover, the chapter considers the statutory interventions in this field in the shape of the Unfair Contract Terms Act 1977 and Part 2 of the Consumer Rights Act 2015 (superseding the Unfair Terms in Consumer Contracts Regulations 1999). Since these statutory interventions there has been a marked tendency to construe exemption clauses in commercial agreements in a more realistic way. This is especially prevalent where the parties are of relatively equal bargaining power and where the clause is perceived as giving effect to a sensible allocation of risk.