A
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Exclusion and limitation clauses
Commercial contracts may seek to exclude
liability for specific categories of damage and to limit liability for
breach of contract. For example:
10.2.5 The company
will be under no liability for any defect arising or introduced by a
Buyer in the course of storage or handling of the products where that
Buyer acts as agent or distributor of the Company’s products.
10.3 The Company
shall not be liable whatsoever for any consequential or indirect loss
suffered by the Buyer whether this loss arises from breach of duty in
contract or tort or in any other way (including loss arising from the
Company’s negligence). Non-exhaustive illustrations
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B
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Standard clauses, also known as boiler-plate clauses, are generally
towards the end of most agreement and frequently include the following.
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A force majeure clause,
which aims to release parties from liability for named risks outside
their reasonable control. Non-exhaustive examples are: acts of God, fire,
flood, earthquake, war, riot, explosion, breakdown or machinery, strikes,
and lockouts.
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•
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A time of the essence
clause, which makes it clear whether or not the time limits contained in
a contract are essential conditions.
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EXERCISES
35.1
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Replace the underlined words and phrases
in the exclusion clause below with alternative words and phrases from A
opposite. There is more than one possibility for one of the answers.
9.4
Except as provided in Condition 8.3, the Seller will (1) not bear
responsibility to the Buyer (2) at all (whether in contract,
tort (including (3) carelessness), breach of statutory (4) obligation
or otherwise) for any (5) harm or for any direct, indirect or (6) resulting
loss (all three of which terms include, but are not limited to, pure
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35.2
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Complete the standard clauses below. Look at B opposite to help you.
Pay attention to the grammatical context.
1. The company shall not be
liable for any failure to deliver the Goods arising from circumstances
______________ ______________ ______________ ______________
2. Time for payment shall be
_______________ _______________ _______________
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35.3
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Which of
the above clauses is
1. a force
majeure clause?
2. a
severance clause?
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