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in this video we focus on one very specific type of clause and that is an exemption clause an exemption clause is a term of a contract that tries to do one of two things it will either try to limit liability to a set financial amount or alternatively it will try to exclude liability for certain types of loss so property damage or consequential loss and so on you can have them mixed together but they ultimately do boil down into one of those two things a limitation or an exclusion so what were going to look at apart from defining them terms in a bit more detail is what governs the enforceability of an exemption clause as you can imagine that they are quite onerous things to sign up to so they are subject to certain rules that the drafter must follow to ensure that they are enforceable and they must make sure that theyre incorporated into the agreement well talk about the red hand rule from lord denning they must be validly constructed so if youre trying to exclude loss for say negli
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