Words and phrases

 

'Exclusion' and 'limitation' of liability

The parties to a contract may, by agreement, either limit or completely exclude some legal liability that would otherwise arise.

Such terms will be enforced by the courts provided that they are properly included in the contract and are unambiguous. But courts will interpret them as narrowly as possible.

Note: The Australian Consumer Law, which is dealt with in a separate module, provides special guarantees to protect consumers from the excessive use of limitation and exclusion clauses.