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Contract law -- Unfair terms It is commonplace for a party drawing up a contract to seek to minimise the amount of liability that may be incurred in the performance of that contract. Contractual clauses that have this effect are usually called `exclusion clauses' or `limitation clauses'. There is a whole academic debate about the doctrinal significance of these clauses in the law of contract. This debate centres on whether they are `defensive' or `obligation defining' in nature. This is of little practical significance, because the courts and, more recently, the legislature have come down in favour of the `defensive' interpretation. Arguably, this `defensive' view is more prevalent in the UK than the European Community (EC), and this may account for some of the problems that are described in this article. Exclusion clauses often attempt to exclude or limit liability for losses arising out of breach of contract, or for extra-contractual...

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