Exclusion Clause In Contract Law

When purchasing something, a minor may be required to sign terms and conditions in order to sale particular. This may include an agreement or warranty when goods are purchased. Though we can form a contract with anyone under the age of 18 but there are certain factors that a person forming the contract must be aware of. If a minor has to enforce a contract, He/She must fulfill some prerequisites. The most important requirement is capacity to contract because a minor is regarded as not having enough understanding about questions involving contractual rights. Accordingly, person dealing with minor does have enough understanding and knowledge which give minor subject to the right to escape or avoid the contract. Some contracts which a minor remains …show more content…
Exclusion Clauses could consist of signed or unsigned documents. In terms of signed documents, a person who hasn’t read the contract and signs it Is bound by the exclusion to follow it. While an unsigned document which is the James Chung case, the exclusion clause will be only binding if they are brought to notice of buyer but notice must be reasonable. If talking about unsigned documents, court may opt for an objective test to check if the notice is reasonable or not. In some cases, the exclusion clause will not be treated valud, if the seller is misrepresenting the scope of the clause. Words of contract must be clear and unambigious, it must not create any doubt in customer/buyer mind. An example of an unsigned exclusion clause would be the clearly written sign right behind the phone chargers point that “If any mobile phone are lost or damaged University will not be responsible for any damage or loss caused.” “It is settled that no clause is effective unless adequately brought to other party attention before the time the contract is made (R.Lawson, 2011).” Talking about James chung, who is 18 now which means is at the age of majority parks his car to Sydney CBD at private parking. When he returns the stereo sound system is missing from his car and the management of the Car Parking denies repsonsbility as they have already show sign warning about ‘parking at owners risk’ at the entrance …show more content…
Legal intention comes from the intention to create legal relation where you have intention to be legally bound. In legal intention, court discovers whether a party intended for a contract or not using a subjective test. Talking about family agreements, they are presumed not to involve legal intention, but if there is a clear intention of contractually then presumption may be rebutted. “As laid down earlier that many countries have recognized intention to create legal relation as separate requirement for enforcing a valid contract. English law is the best example in that category which requires this along with the tri-requirement of offer, acceptance and consideration (B.Gulati, 2011).” A past consideration does not necessarily have legal obligation for the compensation of any past promise that was made for past benefit which forms basis of future promise. As James was experiencing financial difficulties and he asked his aunt Rose to paint her house for $2000. Rose agreed and was satisfied with James work but didn’t pay him on the basis that they both were relatives. In my opinion court will not accept Rose refusal for not paying James because it was not legally enforceable. Rose agreed and had an intention to pay James before he started the work. Presumption about family agreement are not legally enforceable was not rebutted by Rose. Rose is bound to pay James full amount.