EXCLUSION CLAUSE

Exclusion Clause

Exclusion Clause

Introduction

Law is all about giving equal and fair rights to each and every individual within the society; however, in many cases law is used by the people of a nation to cover unethical actions of their own. The books of history are filled with such examples where people have used the clauses of law in a manipulative manner to direct their case into an entirely different direction. One such unfair term highlighted within the books of law is known by the name of exclusion clauses in signed and unsigned contracts. In order to better understand about what these exclusion clauses are and how they affect the parties of any contract; an in depth discussion regarding the relevant factors is required.

Discussion

Exclusion Clause

An exclusion clause refers to a phrase within a contract of sale targeted towards limiting the options available to either or both of the parties in case the warranty is breached. However, the exclusion clause is certainly not limited within the boundaries of sales contracts and could occur within a multitude of other types of contracts (Batten, 2010, p. 287).

For instance, the exclusion clause could also be applied into an insurance contract where the customer would not have the right to recovery because of legal contractual breakage in the case of any particular mishap. Moreover, these exclusionary clauses are not only a part of the contracts signed by the customers but could also exist within unsigned notices.

Signed Contracts

For the exclusion clause to be applied, it is necessary that it should be made of the part of the contract in one way or another. In majority of cases, signed contracts are the common way of including exclusion clauses. The reason behind this is that if the contract with the exclusion clause is signed by the plaintiff then the plaintiff would be bound to follow the contract.

Moreover, this is applicable even if the plaintiff has signed the contract without reading it at all. If read carefully, majority of those terms are directed towards contract void or freedom to the other party of the contract. These types of terms are later seen by the customer as a dirty trick by the marketing company. However, in reality such circumstances could be avoided if the customer decides to act smart and understand his/her rights.

Unsigned Documents & Notices

There is also a possibility that the exclusion clause might be presented to the customer in form of an unsigned notice, ticket or document. However, in this case the customer should be made aware of the exclusion clause beforehand. The majority of unsigned notice exclusion clause cases are relevant to a situation where the customer buys a product with an inclusive warranty card. However, the customer never gives thought towards turning the warranty card around and reading the highlighted terms written at the back.

Validity of the Exclusion Clause

The exclusion clause is legally allowed to be included into a contract. However, there are different tests set up by different law types and acts which must be passed for ...