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[Contract] Red Hand Rule and Incorporation of Terms- Terms
It is important that a party trying to incorporate an exemption clause must take reasonable steps (at or before the time of contracting) to bring the party's attention to the clause.
Recall the principle in L'Estrange v Graucob: Signed document rule.
1.0 Red Hand Rule (Spurling v Bradshaw)
[T]he more unreasonable a clause is, the greater the notice which must be given of it. Some clauses would need to be printed in red ink with a red hand pointing to it before the notice could be held to be sufficient. It is vitally important to explore the High Court's recent decision in Toll (FGCT) Pty Ltd v Alphapharm ('Toll'). In Toll the High Court had to consider whether exemption and indemnity clauses in a credit application, signed by an agent of the plaintiff, were binding. Although the High Court did not specifically refer to the red hand rule, what the court had to say in its unanimous judgment signals a clear answer to the question whether the red hand rule applies to…
Recall the principle in L'Estrange v Graucob: Signed document rule.
1.0 Red Hand Rule (Spurling v Bradshaw)
[T]he more unreasonable a clause is, the greater the notice which must be given of it. Some clauses would need to be printed in red ink with a red hand pointing to it before the notice could be held to be sufficient. It is vitally important to explore the High Court's recent decision in Toll (FGCT) Pty Ltd v Alphapharm ('Toll'). In Toll the High Court had to consider whether exemption and indemnity clauses in a credit application, signed by an agent of the plaintiff, were binding. Although the High Court did not specifically refer to the red hand rule, what the court had to say in its unanimous judgment signals a clear answer to the question whether the red hand rule applies to…
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