A clause is included in a contract and aims to limit or exclude one partys

liability arising from a breach of contract. In order for a party to rely on an exclusion
clause it must be frst shown that the clause was incorporated as a term of the
contract. An exclusion clause can be incorporated in a contract by signature, by
notice or by a course of dealing. In the case of LEstrange v raucob !"#$%& the
plainti', (rs. LEstrange ordered a cigarette machine form manufacturers which
ultimately never wor)ed properly. *he contract term in the sale of the goods
included an agreement clause stating that the manufacturers disclaimed all liability
regarding the malfunction of the machine. (rs. LEstrange signed the document but
after the machine defected claimed to have no )nowledge of the agreement clause
contained in the document and sued for damages. It was held that where there was
a written contract which is signed, a party is bound by all the terms in the contract
irrespective of whether they were aware of the terms it contained. In signing the
order form (rs. LEstrange was bound by all the terms contained irregardless of
whether she had read the form of not and conse+uently her claim was unsuccessful
as she was bound by the clause.
,imilarly, in the case mentioned in the assignment, the (inister of -ealth, in
a meeting with (edic*ransports, signed the form entitled .an application for credit/
which contained the conditions of the contract on the overleaf. *he form itself is a
contract containing an exclusion clause which was standard for this type of
contract. As such the (inister should have been aware that the exclusion clause
formed part of the contract as a general rule for these types of applications.
Additionally, even though the (inister assumed that the conditions on the overleaf
related to the terms of credit and not to an exclusion of liability, the mere fact that
the document was signed by the (inister automatically forms part of the contract
and he is bound by its terms as supported in the case mentioned above. *he
(inisters argument is therefore not valid as it can be seen that if a document
containing an exclusion clause is signed, the clause has thus been incorporated into
the contract.
0E1E0E23E,
3ontract4 Exclusion 3lauses 5 6nfair *erms. 0etrieved from
http77www.tutor8u.net7law7notes7contract4unfair4terms.html
Exclusion and Limitation 3lauses. 0etrieved from
http77www. tenconsultancy.co.u)7law7index.php9option:com;content5...
3ontracts4*opic< *erms of a 3ontract. 0etrieved from
http77www.studentatlaw.com7articles7=7"73ontracts444*opic<...