The rules to interpreting exclusions clauses include the ambiguity rule, negligence rule, presumption against fundamental breach and four corners rule.

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The statement presents a list of rules for interpreting exclusion clauses and asks whether it is true or false.
Option True: If we evaluate each component, we see that ambiguity rule and four corners rule are commonly cited concepts in contract interpretation, and there is a recognized presumption against fundamental breach in some contexts. However, the term 'negligence rule' is not a standard, widely accepted rule of interpreting exclusion clauses. This makes the overall claim unreliable, as one item in the list is not part of the established framework.
Option False: The flaw lies in the inclusion of the 'negligence rule.' While ambiguity, the four corners rule, and the presumption against fundamental breach are recognizable notions in contract interpretation, there is no well-established 'negligence rule' driving how exclusion clauses are interpreted. Therefore, the statement as a whole is not accurate, since it misstates the established set of interpretive rules.
In summary, the presence of an incorrect element ('negligence rule') renders the entire statement inaccurate, even though the other elements have some basis in interpretation principles. The incorrect option is the True one because the list is not correct as stated.

MCD2070 - T3 - 2025 Express Terms and Exemption Clauses Quiz

The rules to interpreting exclusions clauses include the ambiguity rule, negligence rule, presumption against fundamental breach and four corners rule.

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