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In this video, the focus is on exemption clauses in contracts, which aim to either limit liability to a specific financial amount or exclude liability for certain types of loss, such as property damage or consequential loss. These clauses can be mixed but ultimately serve one of these two purposes—limitation or exclusion. The video also discusses the enforceability of exemption clauses, highlighting the importance of adhering to certain rules during drafting. Key points include ensuring the clauses are properly incorporated into the agreement and validly constructed, including the red hand rule established by Lord Denning, especially when attempting to exclude liability for negligence.
