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Judgment of limitation and exclusion clauses

By: Series: Contract Journal ; 408(6326) 10 May 2001, 73(1)Publication details: 2001Subject(s): Summary: Considers the intepretation of exclusion and limitation clauses as explored in the case, "BHP Petroleum v British Steel". British Steel was allowed to rely upon a rectification clause to exclude liability for defects in pipeline it supplied, because the wording in the clause relating to time limits was clear and unambigious. The case highlights that clearly drafted exclusion clauses will completely exclude certain types of liability.

Considers the intepretation of exclusion and limitation clauses as explored in the case, "BHP Petroleum v British Steel". British Steel was allowed to rely upon a rectification clause to exclude liability for defects in pipeline it supplied, because the wording in the clause relating to time limits was clear and unambigious. The case highlights that clearly drafted exclusion clauses will completely exclude certain types of liability.