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Exclusion Clauses: When He Who Pays The Piper Does Not Dictate The Tune

Posted By: Admin | 09.January.2019 |
It is trite that parties are free to contract as they please; and the law recognises and enforces the rights of parties as stated in a contract. In exercise of this right, a person may decide to exclude or otherwise limit the obligations which should ordinarily be binding on him arising from that contract. Exclusion and limitation clauses are clauses inserted in a contract in order to exclude or limit the liability of a party in the contract.

Typically, exclusion and limitation clauses are binding on parties as there is a general presumption of intention on contractual terms: Cannitec International Company Limited v. Solel Boneh Nigeria Limited.1 This article seeks to shed light on the applicability of exclusion and limitation clauses and the role of the Consumer Protection Council (CPC) in reducing its operation.

In business, parties to a contract are free to limit or exclude obligations arising from their transaction. Exclusion and Limitation clauses are more common in standard form contracts and are more often than not used to reduce liability of an offending party. Standard form contracts, otherwise called contracts of adhesion, are mostly used by banks, airlines, logistics and other service providers etc.


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