Exclusion clauses

In this lesson

1. 0:00 Exclusion clauses explained
2. 0:45 Common law tests for validity
3. 1:20 How exclusion clauses must be worded
4. 2:00 Security company case study
5. 2:51 Unfair Contract Terms Act 1977
6. 4:03 Bargaining power and fairness
7. 5:50 Consumer Rights Act 2015
8. 8:39 Unfair terms examples
9. 10:05 Exam standard questions

About this lesson

protect you. You'll explore the common law requirements that make an exclusion clause binding: it must be incorporated into the contract (through signature, notice, or consistent dealings), worded precisely, and interpreted strictly against the company relying on it. The courts apply the contra preferential rule, meaning ambiguous wording is read in the way least favourable to the business. You'll also learn why onerous terms must be clearly highlighted and how courts consider the main purpose of the contract—an exclusion clause cannot override the fundamental reason you entered the agreement. The lesson then covers two key statutory tests. The Unfair Contract Terms Act 1977 applies to business-to-business contracts and makes exclusion clauses for death or personal injury automatically void; for other breaches, judges assess fairness by considering bargaining power, whether the contract was tailor-made or standard, any inducements offered, and your knowledge of the clause. The Consumer Rights Act 2015 protects consumers in business-to-consumer contracts, requiring all terms to be fair, transparent, and in good faith—with automatic voidance for death or injury exclusions and examples of unfair terms including unilateral price increases and one-sided performance obligations. The lesson concludes with exam-style questions testing your understanding of remedies for different term types and how terms are incorporated into contracts, ensuring you can apply these concepts confidently in your Corporate and Business Law assessments.

Duration: 12m