Exemption Clause in UK Law

Leading Cases
  • Armitage v Nurse
    • Court of Appeal (Civil Division)
    • 19 Mar 1997

    I accept the submission made on behalf of Paula that there is an irreducible core of obligations owed by the trustees to the beneficiaries and enforceable by them which is fundamental to the concept of a trust. If the beneficiaries have no rights enforceable against the trustees there are no trusts.

  • George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd
    • Court of Appeal (Civil Division)
    • 29 Set 1982

    Faced with this abuse of power—by the strong against the weak—by the use of the small print of the conditions—the judges did what they could to put a curb upon it. They still had before them the idol, "freedom of contract". They still knelt down and worshipped it, but they concealed under their cloaks a secret weapon.

  • Motis Exports Ltd v Dampskibsselskabet Af 1912 Akieselskab
    • Court of Appeal (Civil Division)
    • 21 Dic 1999

    The clause must therefore be limited and modified to the extent necessary to enable effect to be given to the main object and intent of the contract: see Glynn v Margetson & Co.; G. H. Renton & Co. Ltd. v Palmyra Trading Corporation of Panama. The clause must therefore be limited and modified to the extent necessary to enable effect to be given to the main object and intent of the contract: see Glynn v Margetson & Co.; G. H. Renton & Co. Ltd. v Palmyra Trading Corporation of Panama.

  • Thompson v T. Lohan (Plant Hire) Ltd
    • Court of Appeal (Civil Division)
    • 03 Feb 1987

    "We are invited to regard clause 8 as an exemption clause limiting the owners' general liability for Best and therefore to be read narrowly against them within the principles set out in Alderslade v. Hendon Laundry Ltd. Those principles may well apply to clause 13 which is a general indemnity clause, and may, for the reasons put forward in argument, not suffice in the present case to help the owners if they are unable by virtue of clause 8 to put the liability on the hirers.

  • Impact Funding Solutions Ltd v AIG Europe Insurance Ltd (formerly known as Chartis Insurance (UK) Ltd)
    • Supreme Court
    • 26 Oct 2016

    An exclusion clause must be read in the context of the contract of insurance as a whole. It must be construed in a manner which is consistent with and not repugnant to the purpose of the insurance contract. There may be circumstances in which in order to achieve that end, the court may construe the exclusions in an insurance contract narrowly.

  • Lamport & Holt Lines Ltd v Coubro & Scrutton (M. & I.) Ltd (Raphael)
    • Court of Appeal (Civil Division)
    • 01 Abr 1982

    On the other hand if there is a head of liability upon which the clause could bite in addition to negligence then, because it is more unliekly than not that a party will be ready to excuse his other contracting party from the consequences of the latter's negligence, the clause will generally be construed as not covering negligence.

  • Levison v Patent Steam Carpet Cleaning Company Ltd
    • Court of Appeal (Civil Division)
    • 22 Abr 1977

    On it I am clearly of opinion that, in a contract of bailment, when a bailee seeks to escape liability on the ground that he was not negligent or that he was excused by an exception or limitation clause, then he must show what happened to the goods. He must prove all the circumstances known to him in which the loss or damage occurred.

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Legislation
  • Unfair Contract Terms Act 1977
    • UK Non-devolved
    • 1 de Enero de 1977
    ......reasonableness. S-4 . Unreasonable indemnity clauses. 4 Unreasonable indemnity clauses. . (1) A person dealing as consumer ... S-13 . Varieties of exemption clause. 13 Varieties of exemption clause. . (1) To the extent that this ......
  • Finance Act 1907
    • UK Non-devolved
    • 1 de Enero de 1907
    ......II . Stamps. Part II. . Stamps. . S-6 . Extension of exemption from stamp duty in case of certain affidavits and declarations. 6 ... duty as an agreement, or, if under seal (or in Scotland with a clause of registration), as a deed, as the case requires, and the exemption ......
  • The Public Contracts Regulations 2015
    • UK Non-devolved
    • 1 de Enero de 2015
    ...... procurement documents in clear, precise and unequivocal review clauses, which may include price revision clauses or options, provided that such ...Exemptions . (5) A contracting authority need not comply with paragraph (1) in any ......
  • European Union Act 2011
    • UK Non-devolved
    • 1 de Enero de 2011
    ...... . . (c) the referendum condition or the exemption condition is met. . (2) The referendum condition is that-. . . (a) ... . . Article 222(3) (decisions on implementation of solidarity clause having defence implications). . . Article 223(1) (uniform procedures for ......
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Books & Journal Articles
  • Armitage v Nurse & Others
    • Núm. 5-3, Marzo 1997
    • Journal of Financial Regulation and Compliance
    • 272-275
    The Appellant in this case, referred to throughout the Court of Appeal's judgment as ‘Paula’, was the principal beneficiary under a settlement which contained a trustee exemption clause in the foll...
    ...... an d breac h o f trust : validit y o f truste e exemptio n clause s Armitag e v Nurs e & Other s Cour t o f Appeal : Hirs t LJ , ......
  • FUNDAMENTALISM IN CONTRACT
    • Núm. 30-5, Septiembre 1967
    • The Modern Law Review
    ......) were precluded from relying solely on the demurrage clause in the charterparty because by deliberately per- forming fewer ..., that the demurrage clause in question was not an exemption clause strict0 sensu and that, in any case, the appel- lants ......
  • Return To Dunlop v. Selfridge?
    • Núm. 23-4, Julio 1960
    • The Modern Law Review
    ...... Exemption clauses have been a feature of contracts of carriage, ......
  • STATUTES
    • Núm. 30-5, Septiembre 1967
    • The Modern Law Review
    ...... of secondary, contractual provisions such as arbitration clauses, liquidated damages clauses and so forth. To take the dilemma ... secondary obligations, e.g., arbitration.40 Where do exemption clauses fit into such a scheme of things ? Lord Reid was ......
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Law Firm Commentaries
  • Exemption and non-reliance clauses
    • JD Supra United Kingdom
    Richard Hooley spoke to us this lunchtime about exemption clauses. He began by quoting from Andrew Burrows’ A Restatement of the English Law of Contract (which has recently been updated) and its ex...
  • Breach Of Trust And The Defences Available
    • Mondaq UK
    ......THE DEFENCES AVAILABLE. EXEMPTION CLAUSE. A trustee who has committed a breach of trust could be protected. ......
  • Projects & Construction Law Update - July 2017
    • Mondaq UK
    ...... "It does what it says on the tin" - A more lenient approach to exemption clauses. (1) Persimmon Homes Ltd (2) Taylor Wimpey UK Ltd (3) BDW ......
  • Professional Trustees: Use of Trustee Exoneration Clauses
    • Mondaq United Kingdom
    ...... signalled approval of the continued use of this important layer of protection for trustees.  A trustee "exoneration" clause (or trustee "exemption clause") seeks to limit or exclude a trustee's liability for negligence and/or breach of trust.   When a trust contains such a clause it controls ......
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