Which of the following is not a requirement for an exclusion clause to be valid?

Question

BlackTom AI · Accepted Answer

Let’s parse the question: which statement describes something that is not a requirement for an exclusion clause to be valid?
Option 1: 'It must be incorporated into the contract (through signature, reasonable notice, or course of dealing)'. This is a valid requirement in many contract-law contexts: an exclusion clause must be incorporated into the contract, which can occur by signing the contract, giving reasonable notice of the clause, or through a prior course of dealing. So this statement describes a genuine requirement.
Option 2: 'It must not contravene statute or public policy'. This aligns with the general rule that terms cannot contravene statutory law or public policy; a clause that breaches statute or policy would be invalid. Therefore, this is a valid requirement and conceptually accurate.
Option 3: 'It must be clear and unambiguous (as per the contra proferentem rule, ambiguities are interpreted against the party seeking to rely on the clause)'. Clarity is a fundamental principle for exclusion clauses, and the contra proferentem rule indeed interprets ambiguities in favor of the party not drafting the clause. This is a valid requirement.
Option 4: 'It must be signed in writing'. This statement suggests that writing and a written signature are always necessary for an exclusion clause to be valid. However, many exclusion clauses are valid even without a written form if they are incorporated by notice or course of dealing, or by signature of the contract. Writing is not universally required as a standalone condition for validity. This makes this statement not a universal requirement and thus the correct choice for the question as written.
In summary, options 1, 2, and 3 describe standard requirements for exclusion clauses to be valid, while option 4 asserts a universal written form that is not always required. The distinction hinges on the method of incorporation and the governing legal framework, which allows non-written incorporation under certain circumstances.

PMGT5895 (all) Contracts Management Quiz

Which of the following is not a requirement for an exclusion clause to be valid?

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