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Exclusion clauses

An exclusion clause (in the context of contract law) is a term of a contract which seeks to limit or exclude liability for contractual breach. For example, a contract between A and B might provide that B will not be liable in the event of a breach caused by negligence of its employees or that, if found guilty of a breach of contract B will not be liable for more than $500 in damages. Exclusion clauses like this, if properly drafted, are generally effective. There are, however, some statutory provisions which prevent or limit the use of exclusion clauses in some cases (most commonly in relation to consumer contracts)

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