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Question: “It is a mistake to see exclusion and limitation clauses entirely in [a] negative light. They can play an important (and positive) role in the regulations of risk.” McKendrick: Text, Cases and Materials). Discuss.

Grade 2:1 Law of Contracts. Year 1 LLB

Answer: Exclusion and limitation clauses, which will henceforth be collectively referred to as exemption clauses, are a means of excluding or limiting (respectively) liability in the event of a breach of contract. They are commonly viewed in a negative light due to the fact that they are often used by parties as a means of absolving themselves of responsibility for terms they are contractually obliged to fulfil. However, when assessing the virtue of exemption clauses, it is necessary that their intended usage, and value, be scrutinised. Exemption clauses were introduced as a means of creating legal certainty in contracts, enabling businesses to prepare for potential negative outcomes. Consequently, without exemption clauses, the liability of parties for breaches would not be certain and neither wo......(short extract)

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Details: - Mark: 65% | Course: Contract Law | Year: 1st | Words: 1258 | References: Yes | Date written: March, 2017 | Date submitted: May 08, 2017 | Coursework ID: 1025

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