Exemption Clause
Exemption Clause
Each time a person travels on a bus, train or an airplane, buys a washing machine, computers, etc., or deposits good in a railway locker or even going to a concert, he will receive a standard form contract. There are two kinds of standard form contracts which is business transactions and consumer transactions
Business transaction is one that regulates dealings between people in business for example building contracts and etc. While consumer transaction is one which is the result of concentration of particular kind of business in relatively few hands, for example, hire purchase agreement and insurance contracts.
The party delivering the standard form contract may insert certain clauses in the contract unfairly exempting him from certain liabilities at common law. These clauses may appear in printed tickets, notices or receipts which are brought to consumers’ attention at the time of the agreement. The Malaysian Courts have followed English common law regarding this as the Contracts Act 1950 contains no provision dealing with exemption clause.
Definition of Exemption Clause
An exemption clause is a term of a contract which exclude a person or the defendant liability for his or her breach of contract.
The effect of exemption clause is that the plaintiff have no right to claim for damages or compensation for the loss suffered. An example of exclusion clause is in the case of Premier Hotel v Tang Ling Seng which stated
“The hotel will not assume responsibility for valuables or money lost from the room”
Or
In the case of Chin Hooi Nan v Comprehensive Auto Restoration Service which stated
“The company is not liable for any loss or damage whatsoever of or to the vehicle, its accessories or contents. Vehicles and goods are at owner’s risk.”
An Example Of Exclusion Clause in Concert Ticket
Whether an exemption clause form part of the contract ?
In the case of Ailsa Craig
Each time a person travels on a bus, train or an airplane, buys a washing machine, computers, etc., or deposits good in a railway locker or even going to a concert, he will receive a standard form contract. There are two kinds of standard form contracts which is business transactions and consumer transactions
Business transaction is one that regulates dealings between people in business for example building contracts and etc. While consumer transaction is one which is the result of concentration of particular kind of business in relatively few hands, for example, hire purchase agreement and insurance contracts.
The party delivering the standard form contract may insert certain clauses in the contract unfairly exempting him from certain liabilities at common law. These clauses may appear in printed tickets, notices or receipts which are brought to consumers’ attention at the time of the agreement. The Malaysian Courts have followed English common law regarding this as the Contracts Act 1950 contains no provision dealing with exemption clause.
Definition of Exemption Clause
An exemption clause is a term of a contract which exclude a person or the defendant liability for his or her breach of contract.
The effect of exemption clause is that the plaintiff have no right to claim for damages or compensation for the loss suffered. An example of exclusion clause is in the case of Premier Hotel v Tang Ling Seng which stated
“The hotel will not assume responsibility for valuables or money lost from the room”
Or
In the case of Chin Hooi Nan v Comprehensive Auto Restoration Service which stated
“The company is not liable for any loss or damage whatsoever of or to the vehicle, its accessories or contents. Vehicles and goods are at owner’s risk.”
An Example Of Exclusion Clause in Concert Ticket
Whether an exemption clause form part of the contract ?
In the case of Ailsa Craig