Exclusion Clauses in Business Contracts Essay Example | Topics and Well Written Essays - 1750 words

Exclusion Clauses in Business Contracts - Essay Example Certain warranties or guarantees may not actually be written into a contract, yet those contractual terms are implied by statute. For example, the Supply of Goods and Services Act of 1982 makes it clear that when a sale is made, there is an implied condition that the goods that have been supplied are of satisfactory quality. While most businesses are bound to the necessity of providing satisfactory quality of goods, they can protect themselves from very high levels of liability through exclusion clauses. An exclusion clause may be inserted into a contract in order to exclude one party’s liability for breach of contract or negligence . Taking into account the standard terms of a business contract, it must be noted that exclusion Clauses of the Company’s terms and conditions of sale needs to absolve it of any liability on the condition of the goods, such that it will be invalidated only if it is unreasonable. The validity of exclusion clauses has however, been upheld by the Courts in the case of dealing between businesses who are parties of equal bargaining power . Exclusion clauses have greater validity and will be enforced more strictly by the Courts in cases where ordinary consumers are involved . Filing a claim against a business, even if an exclusion clause is contained in a contract, could make it possible to invoke the provisions of the Unfair Contract Terms Act of 1977, which is only relevant in the case of ordinary customers and not for businesses.