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Limitation Of Liability And Exemption Clauses

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Chapter Summary

This chapter deals with the concept of the limitation or exemption clause, comparing it with closely related clauses. The clauses under scrutiny concern either &t;liability&t; or &t;warranty&t;. The term &t;liability&t; covers the consequences of a breach, whereas the term &t;warranty&t; basically refers to the scope of an obligation. Clauses dealing either with liability or with warranty will thus be examined simultaneously, but care will be taken to establish the necessary identification. The chapter then analyzes the main components of such clauses. It draws attention to the problems of validity that may occur in connection with some of the clauses, in the various legal systems. The chapter emphasizes the important issue of consequential and/or unforeseeable damages. It outlines the links between limitation and exemption clauses and insurance problems. Finally, additional and critical remarks, including questions related to the problem of validity are presented.

Keywords: exemption clauses; liability; limitation clauses



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