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content of contract

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › content of contract

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.
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  • October 10, 2017 at 9:54 am #410160
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    Hi Mike!

    What is meant by ‘the main purpose rule’ in relation to exclusion clauses?

    October 10, 2017 at 1:12 pm #410185
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    The meaning of the expression “the main purpose rule” when an exclusion clause is incorporated into a contract is that, should a dispute arise and the matter is taken to Court, the Court will consider the exclusion clause and try to establish, in the Court’s mind, what was the reason behind the inclusion of the exclusion clause

    If now the disputed matter is in relation to an apparent breach completely not envisaged as likely to occur, then why should either party rely on an exclusion clause for something that was never even considered likely

    The ‘main purpose rule’ is therefore trying to see what potential grievances WERE envisaged and WERE to be covered by the exclusion clause

    Does that make it clear?

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  • The topic ‘content of contract’ is closed to new replies.

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