Exclusion clauses
An exclusion (or exemption) clause tries to exclude or limit a party's liability. To be effective it must be incorporated into the contract, must on its true construction cover the loss, and must survive statutory controls — chiefly the Unfair Contract Terms Act 1977 and the Consumer Rights Act 2015.
Last reviewed 14 June 2026
Incorporation can be by signature (L'Estrange v F Graucob Ltd [1934] 2 KB 394), by reasonable notice given before or at the time of contracting (Olley v Marlborough Court), or by a consistent course of dealing. Ambiguities are construed against the party relying on the clause (contra proferentem).
UCTA 1977 makes some clauses void — for example one excluding liability for death or personal injury caused by negligence — and subjects others to a reasonableness test; the Consumer Rights Act 2015 applies a fairness test to consumer contracts.
Key cases
- L'Estrange v F Graucob Ltd [1934] 2 KB 394
- Olley v Marlborough Court Ltd [1949] 1 KB 532
- Curtis v Chemical Cleaning & Dyeing Co [1951] 1 KB 805
Frequently asked questions
When is an exclusion clause valid?
When it is incorporated into the contract, covers the loss on its proper construction, and passes statutory controls under UCTA 1977 / the Consumer Rights Act 2015.
Can you exclude liability for negligence causing death?
No. Under UCTA 1977 a clause excluding liability for death or personal injury caused by negligence is void.