Part I The General Part, 6 Standard Form Contracts, Public Policy, and the Realms of Strict Construction and Strict Compliance

Subject(s):

Construction of contract — Interpretation of contract — Validity of contract

This chapter introduces standard form contracts and the issues of construction to which they give rise. Such documents contain all species of contractual terms. However, in standard contractual texts the focus tends to be on exemption clauses, which have generated a great wealth of case law. The concern about standard forms generally and exemption clauses in particular is that they may not reflect a genuine bargain where the terms are drafted or chosen by one of the parties and are proffered on a ‘take-it-or-leave-it’ basis. This is particularly true of business-to-consumer dealings. However that stereotype of standard forms has been resisted where it is clear that both parties are commercial actors of relatively equal bargaining power.