Exclusion Clauses in Business Contracts Essay Example | Topics and Well Written Essays - 1750 words

Exclusion Clauses in Business Contracts - Essay Examplecertain(p) warranties or guarantees whitethorn not actually be written into a contract, yet those contractual ground are implied by statute. For example, the Supply of Goods and Services Act of 1982 makes it clear that when a sale is made, there is an implied mark that the goods that have been supplied are of satisfactory character reference.While most business sectores are bound to the necessity of providing satisfactory quality of goods, they can protect themselves from very high levels of financial obligation through exclusion clauses. An exclusion clause may be inserted into a contract in order to exclude one partys liability for breach of contract or negligence .Taking into account the standard terms of a business contract, it must be noted that exclusion Clauses of the Companys terms and conditions of sale needs to acquit it of any liability on the condition of the goods, such that it will be invalidated only if it i s unreasonable. The hardship of exclusion clauses has however, been upheld by the Courts in the case of dealing between businesses who are parties of equal bargaining spring . Exclusion clauses have greater validity and will be enforced more strictly by the Courts in cases where ordinary consumers are involved . Filing a claim against a business, even if an exclusion clause is contained in a contract, could make it possible to invoke the provisions of the Unfair Contract impairment Act of 1977, which is only relevant in the case of ordinary customers and not for businesses.