1eh 'oo Llng All rlghts reserved

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Mutters whlch huve been ugreed between the urtles to u contruct und
whlch huve been lncororuted lnto the contruct.
1hese terms ure clusslfed lnto ! muln cutegorles
under the "#$% '( )''*+ ,-. /012
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Lssentlully u condltlon muy be suld to be u term of u contruct whlch ls so lmortunt to the muln urose of the contruct
thut the breuch of lt by one urty wlll entltle the other to termlnute lt ultogether.
Although the 3,617 does not defne u condltlon, the "'),612 stutes thut, u condltlon ls u stlulutlon essentlul to the muln
urose of the contruct, the breuch of whlch glves rlse to the rlght to treut the contruct us reudluted.
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A wurrunty muy be suld to be u term of u contruct whlch ls not lmortunt to the muln urose of the contruct.
lt ls defned ln the "'),612 us 'u stlulutlon colluterul to the muln urose of the contruct, the breuch of whlch glves rlse
to u clulm for dumuges but not u rlght to reject the goods und treut the contruct us reudluted'.
A breuch of wurrunty wlll entltle the lnnocent urty to clulm dumuges only.
lt must be noted tut u urty who ls entltled to termlnute the contruct for breuch of u condltlon, muy choose to contlnue
the contruct und treut the breuch us u breuch of wurrunty only.
ln such cuses he wlll only be entltled to dumuges.
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(1he furnuce dld not met the requlrement of huvlng u temeruture of not less thun z6cc l. Plulntl wus only entltled to dumuges.)
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'lntermedlute' or 'lnnomlnute' terms us they ure otherwlse referred to ure terms whlch ure too comlex to be clusslfed
elther us u condltlon or u wurrunty.
1hey lle somewhere between u condltlon und u wurrunty.
ln such cuses the court hus the tusk of determlnlng the serlousness of the breuch und ulso to determlne whether such
breuch should entltle the lulntl to the rlght to termlnute the contruct or merely to clulm dumuges.
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(1he term wus regurded us too comlex to be clusslfed elther us u condltlon or u wurrunty)
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"%-.5'4 !7 3,617 = Agreements, the meunlng of whlch ls not certuln, or cuuble of belng mude certuln ure vold.
lllustrutlon to s.c
(u) A ugrees to sell to 8 'u hundred tons of oll'. 1here ls nothlng whutsoever to show whut klnd of oll wus lntended. 1he
ugreement ls vold for uncertulnty.
(b) A ugrees to sell to 8 one hundred tons of oll of u seclfed descrltlon, known us un urtlcle of commerce. 1here ls no
uncertulnty here to muke the ugreement vold.
(c) A, who ls u deuler ln coconut oll only, ugrees to sell to 8 'one hundred tons of oll'. 1he nuture of A's trude uords un
lndlcutlon of the meunlng of the words, und A hus entered lnto u contruct for sule of one hundred tons of coconut oll.
9&/=;;&7 43(''> 1 -=&3 23%&7
z 1eh 'oo Llng All rlghts reserved
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An exemtlon cluuse ls u cluuse ln u contruct whlch uttemts to ulter, llmlt or ubsolutely
exclude some obllgutlon urlslng under the contruct so us to uvold llublllty whlch muy otherwlse
urlse us u result of u breuch of u term of Contruct.
lt ls ulso known us un excluslon cluuse.
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vhere the excluslon cluuse ls cleur und unumblguous, the courts wlll hold thut the exemtlon cluuse ls vulld.
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(ln thls cuse, the uellunts ordered goods from New York. lt wus urrunged thut the goods would be shled to Muluyslu on the resondent's shl. 1he blll of
ludlng rovlded thut 'the currler shull not be lluble for uny loss or dumuge urlslng or resultlng from deluyed or eurly urrlvul of the goods und thut uny under or over
currluge shull not be consldered u devlutlon or vltlute uny term of the blll of ludlng. 1he goods ln questlon whlch were suosed to be ut on bourd u shl, whlch
wus due to urrlve on z Lecember , were ln fuct louded on to unother shl whlch urrlved ln 'une ,. 1he lederul Court held thut the exemtlon cluuse wus
eectlve und guve judgment for the resondents.)
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As contructlng urtles do not ulwuys huve equul burgulnlng ower, the weuker urty muy be ut the mercy of the
stronger urty who hus lncluded ln the contruct, exemtlon cluuses much ln hls fuvour.
1he courts huve luyed un lmortunt role ln the lnterretutlon of such cluuses.
1he $#7'/& ;/#D(/(7'=. rule wus develoed by the common luw courts wlth u vlew to usslstlng the weuker urty.
8y vlrtue of thls rule, where the excluslon cluuse ls umblguous or cuuble of more thun on meunlng, the courts
would construe the cluuse ugulnst the urty for whose beneft lt wus lnserted.
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(ln thls cuse, there wus u contruct for the sule of seeds referred to ln the lmlled us tot growth, descrltlon or uny other mutters. 1he seeds sulled were of
lnferlor quullty. 1he seller sought to uvld llublllty relylng on the excluslon cluuse. 1he court, ulylng the !"#$%& (%")*%*#$+, rule, lnterreted the cluuse ugulnst the
seller, stutlng thut the cluuse only referred to wurruntles und not to condltlons. 1he romlse to suly 'common Lngllsh Sunfoln' wus u condltlon whlch wus not
excluded by the cluuse ln questlon.)
ln cuses lnvolvlng negllgence, courts ure ulso ruther strlct ln the lnterretutlon of excluslon cluuses. Cleur und
unumblguous words ure necessury to rovlde rotectlon to the urty relylng uon the cluuse.
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(ln thls cuse, u guruge sought to uvold llublllty for dumuge to u customers cur relylng on un exemtlon cluuse whlch rovlded thut the guruge wus 'not resonslble
for dumuge cuused by fre to customers' curs'. 1he court ruled thut the excluslon cluuse wus only eectlve ln the ubsence of negllgence on the urt of the guruge.
1he cluuse dld not exclude llublllty for dumuge urlslng out of negllgence.)