Contract Law

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Contract Law


Contracts are those legal binding agreements which are made between two parties; they accept and follow all the terms binding to it in order to work together in harmony. There are various conditions and terms stated in a particular contract accepted mutually by both the parties in order to enter in to a legal binding contract. These contracts have certain clauses which underpin its importance in favor of either of the party and can be used as a source to defend if surrounded by a legal issue.




Contract Law4

Exemption Clause4

Contractual Liability5

Excludes Liability5

Protects the Defendant5

Case Study5


Case Laws7

Thornton v Shoe Lane Parking (1971)7

Parker v South Eastern Railway (1877) 2 CPD 4168

White v John Warwick [1953] 1 WLR 12859


Contract Law


The system which underpins personal and voluntary agreements for exchange of goods and services comes under the Contract Laws. The two significant features of a contract are the offer and its acceptance. The party which makes an offer is termed as the offeror making the later one an offeree. The vital theory of every contract is giving something in exchange to get something. None of the exchanges accomplished in our society at any level exempts the contract law.


Contract Law

Contract law serves as the foundation in the US society today. This is an observation which often goes unobserved and people are exposed to the risks it holds. By definition, it is the law which deals with oral and written agreements coupled with exchange of goods, services, money, or property. The three different kinds of contracts include Oral (which is made by oral agreements), Written Agreements (which are stated in writing) and the implied Agreements (which arise by implications) (Markham, 2002.).

Exemption Clause

An exemption clause is referred as a clause through which a party tries to regulate the other party's right to damages. This is a phrase in an agreement which limits the activity of the opposite party through certain clause. It is also known as the Exclusion Clause (Andrews, 2011.). The elucidation of the exemption clause also includes a rule merely know as The Contra Preferendum Rule (CPR). According to this rule, if the clause of exemption is not written evidently, the courts will demand (CPR) Contra Preferendum Rule to the party which relies on the clause, to provide an explanation as to why the clause was not clearly worded (Law Teacher, n.d.).

Contractual Liability

Excludes Liability

The exemption clause, at times excludes a party's liability in case of breaching a contract. For instance, if a company uses the clause, it will notify in clear words that the company will not be responsible for any deaths, injuries and accidents subjected to any employee during his presence in the company. This limits the employee's right to objet the policy in case of any mishap (Samuel, 2000.).

Protects the Defendant

There are situations when the defendant companies rely on the exemption clauses only, which is unfair to an extent. The exemption clause helps the defendant to formulate a policy according to its wishes in case things do not go their ...
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