Exemption Clauses and Third Parties in English and Israeli Law

15 Pages Posted: 15 Jun 2015

See all articles by Gabriela Shalev

Gabriela Shalev

Ono Academic College Faculty of Law; Hebrew University of Jerusalem - Faculty of Law

Date Written: 1978

Abstract

An exemption clause which purports to affect the rights and liabilities of a stranger to the contract raises the question of the connection between privity and exemption clauses. It is usual to regard the denial of validity to an exemption clause referring to the liability of a stranger as deriving from privity. Let us therefore commence by clarifying the meaning of privity and its relationship to exemption clauses and then go on to explain our view that such clauses should operate in favour or against a stranger in accordance with general principles of the positive contract law. Since privity has two aspects - denying a contract the capacity neither to benefit nor to harm a stranger - our treatment of the influence of privity upon exemption clauses will likewise deal with exempting a stranger and fettering him. After describing the situation in English law, we will turn to Israeli law which is no longer identical with English law, regarding the relationship between privity and exemption clauses.

Keywords: contract, exemption, privity, English law, clause

Suggested Citation

Shalev, Gabriela, Exemption Clauses and Third Parties in English and Israeli Law (1978). 13 Isr. L. Rev. 474 (1978) , Hebrew University of Jerusalem Legal Research Paper, Available at SSRN: https://ssrn.com/abstract=2618110

Gabriela Shalev (Contact Author)

Ono Academic College Faculty of Law ( email )

104 Zahal St.
Kiryat Ono, 55000
Israel

Hebrew University of Jerusalem - Faculty of Law

Mount Scopus
Mount Scopus, IL 91905
Israel

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