Limitation of Liability in UK Law

Leading Cases
  • The Bramley Moore
    • Court of Appeal
    • 27 Nov 1963

    The principle underlying limitation of liability is that the wrongdoer should be liable according to the value of his ship and no more. A small tug has comparatively small value and it should have a correspondingly low measure of liability, even though it is towing a great liner and docs great damage. It is a rule of public policy which has its origin in history and its justification in convenience.

  • Suisse Atlantique Société d'Armement Maritime S.A. v N.v Rotterdamsche Kolen Centrale (Silvretta.)
    • House of Lords
    • 31 Mar 1966

    One may safely say that the parties cannot, in a contract, have contemplated that the clause should have so wide an ambit as in effect to deprive one party's stipulations of all contractual force: to do so would be to reduce the contract to a mere declaration of intent. To this extent it may be correct to say that there is a rule of law against the application of an exceptions clause to a particular type of breach.

  • Midland Silicones Ltd v Scruttons Ltd
    • House of Lords
    • 06 Dic 1961

    I can see a possibility of success of the agency argument if (first) the Bill of Lading makes it clear that the stevedore is intended to be protected by the provisions in it which limit liability, (secondly) the Bill of Lading makes it clear that the carrier, in addition to contracting for these provisions on his own behalf, is also contracting as agent for the stevedore that these provisions should apply to the stevedore, (thirdly) the carrier has authority from the stevedore to do that, or perhaps later ratification by the stevedore would suffice, and (fourthly) that any difficulties about consideration moving from the stevedore were overcome.

  • George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd
    • House of Lords
    • 30 Jun 1983

    It must follow, in my view, that, when asked to review such a decision on appeal, the appellate court should treat the original decision with the utmost respect and refrain from interference with it unless satisfied that it proceeded upon some erroneous principle or was plainly and obviously wrong.

  • Granville Oil & Chemicals Ltd v Davis Turner & Company Ltd
    • Court of Appeal (Civil Division)
    • 15 Abr 2003

    The 1977 Act obviously plays a very important role in protecting vulnerable consumers from the effects of draconian contract terms. But I am less enthusiastic about its intrusion into contracts between commercial parties of equal bargaining strength, who should generally be considered capable of being able to make contracts of their choosing and expect to be bound by their terms.

  • RTS Flexible Systems Ltd v Molkerei Alois Muller GmbH & Company KG
    • Supreme Court
    • 21 Jul 2010

    Whether there is a binding contract between the parties and, if so, upon what terms depends upon what they have agreed. It depends not upon their subjective state of mind, but upon a consideration of what was communicated between them by words or conduct, and whether that leads objectively to a conclusion that they intended to create legal relations and had agreed upon all the terms which they regarded or the law requires as essential for the formation of legally binding relations.

  • Cream Holdings Ltd v Stuart Davenport
    • Court of Appeal (Civil Division)
    • 09 Nov 2011

    In my judgment, the substantial difficulty for the Company on this point is that its construction produces consequences so surprising that it must be doubtful whether they can have been within the contemplation of the parties.

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Books & Journal Articles
  • Ethiopian Law of International Carriage by Air: An Overview
    • Núm. 5-2, Julio 2011
    • Mizan Law Review
    • Hailegabriel G. Feyissa
    • Lecturer in Law (Bahir Dar University) and Attorney at Law (ANRS); LLB (Bahir Dar University, Ethiopia)
    • 215-245
    Ethiopia’s aviation history goes back to the late 1920s. And, carriage of goods and passengers by air dates at least as far back as the 1940s - the decade which witnessed the establishment of Ethio...
    ...... law, international carriage by air, the 1929 Warsaw Convention, liability of the carrier, documents of carriage, limitation of liability of the ......
  • Expand and contract.
    • Núm. 2001, Enero 2001
    • Financial Management (UK)
    • Warchus, John
    • Application service providers - Brief Article
    ....... The issue of limitation of liability is relevant to financial-sector ASP contracts because poor ......
  • A Birthday Present for Lord Denning: The Contracts (Rights of Third Parties) Act 1999
    • Núm. 63-5, Septiembre 2000
    • The Modern Law Review
    ......, the relevant contract was the bill of lading which contained a limitation of liability clause. The contract was initially between the shipper and ......
  • Privity of Contract — That Pestilential Nuisance
    • Núm. 56-5, Septiembre 1993
    • The Modern Law Review
    ...... 1 l(b) of the contract provided: The warehouseman's liability on any one package is limited to $40 unless the holder has ... La Forest J saw it, was not whether the contractual limitation of liability should affect the terms of the employees’ liability ......
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Law Firm Commentaries
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