How to exclude liability — drafting exclusion clauses

When things go wrong, a well-drafted exclusion clause could make all the difference. What should you be aware of when you are drafting or reviewing these clauses?

Exclusion clauses come in many different forms: they might try to prevent or restrict the type of loss a party can claim in the event of a breach; they might cap the value of claims that can be made under the contract to the contract price or licence fee; they might exclude all remedies other that those provided for in the contract itself.

Whatever they do, it is essential that exclusion clauses are properly incorporated into the contract, that they comply with the statutory framework set out in the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations and that they are clearly drafted…

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