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Yates defined an exemption clause as, "a clause in a contract or a term in a notice which appears to exclude or restrict a liability or a legal duty which would otherwise arise"
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Obligations 3 1 (a) Yates defined an exemption clause as, "a clause in a contract or a term in a notice which appears to exclude or restrict a liability or a legal duty which would otherwise arise"1 Exemption clauses break down into three main types; exclusion clauses which exclude liability completely, limitation clauses which restrict it in some way and indemnity clauses, which pass the risk of legal action on to the other party. At common law the court must be satisfied of two things, firstly, the party relying on these clauses must prove that it was incorporated into the contract, this may have been done before or at the time of the contract. Once the court is satisfied with the clause being incorporated in the contract, then it must be shown that the wording in the clause covers what actually happened. The incorporation of a clause may be shown in...
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