Consumer contracts law is too complex for the average consumer to enter a contract to buy a major product or service without legal advice. Exclusion or limitation clauses can be a trap for the unwary consumer, and usually only are discovered when their expectations of the supplier are not met. http://www.abclegal.com.au

1. Exclusion and Limitation Clauses in Consumer Contracts Law
It’s hard to imagine anyone in our society not being touched at some time in their life by
consumer contracts law, although it’s not something that most people are particularly aware
of. Usually, the first time it becomes an issue is when a consumer has a complaint about
some goods they have purchased or a service they paid for which didn’t meet their
expectations. It becomes even more complicated for them if they have actually signed a
consumer contract that has an impact on their ability to receive recompense in cash or kind
for their loss.
Despite the efforts of legislators to have all legal documents written in “plain English” most
contracts are still difficult for the average consumer to read and understand without
assistance from lawyers Sydney. To make the issue even more difficult for the consumer,
some contracts have exclusion and limitation clauses that may diminish their rights
disproportionately against those of the supplier.
Exclusion or limitation clauses are usually inserted in a consumer contract by a
manufacturer or supplier of goods or services wishing to exclude or limit a liability that may
arise from the contract they have with the customer. Many such clauses are legally valid and
fall within the boundaries of consumer contracts law.
The courts will determine if an exclusion or limitation clause is valid by examining if the
clause is included in the signed contract, if there was reasonable notice of the existence of
the clause prior to the terms of contract being agreed and if the parties had prior dealings
over a period of time. The consumer has rights under consumer contracts law, and exclusion
or limitation clauses that seek to remove those rights will not be seen as valid by the courts.
In these cases, the courts examine the way the clause is written in relation to the party that
is relying on the clause to exclude or limit their liability. The courts will look even closer if
that party was in a more powerful bargaining position than the other party or parties to the
contract.
The party who will be advantaged by the exclusion or limitation clause must show the court
that the clause was part of the contract. The courts also look at whether or not the clause
was included in the written agreement, and if the wording of the clause was clear,
unmistakable, and covered the anticipated situation it was included for. With such
complexity involved, it is vital that consumers first check with their solicitors Sydney
before signing difficult consumer contracts.
The courts look unfavourably on exclusion or limitation clauses that are broad, poorly
constructed and ambiguous, and the manufacturer or service provider who is relying on
these clauses could be facing an undesired outcome.
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