... purport to remove, liability. As mentioned, in this problem we are dealing with a limitation clause. A limitation clause is used solely for those clauses which do not remove, or purport to remove, liability entirely but, for example, restrict, or purport to restrict, damages payable on a breach of a contract to a specified sum. We can tell that it is a limitation clause because in the clause it states that it "limits its liability for any breach...to £50". The question of the effectiveness of exemption clauses raises three basic issues as to (i) the incorporation of such clauses as contract terms (ii) the construction of the term and (iii) the impact of legislation. In normal circumstances when dealing with an exemption clause we would need to ascertain whether ;(i) the clause is part of the contract, (ii) Is the clause appropriately worded to cover what has occurred and (iii) ...

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