On The Format Of Exemption Clauses In The Contract

In this modern society, with the development of the economy, standard contractbecame popular all over the society. Due to plenty of exemption clauses be used in thestandard contract, it got extensive attention. This kind of exemption clauses were alwaysput into the contract by the economically stronger parties of the contract, playing a role ofaverting the risk, controlling the cost of the deal and increasing of the efficiency. But,because of the monopoly position or quasi-monopoly position of one party in somespecial area, the exemption clauses he offered always protect his own interests more,while strengthened the other party's burden, so it will cause the imbalance of the interestof the two parties. The other party was in the weaker economic position, so he has not somany choices to these exemption clauses, "take it or leave it" became so popular. So, it'snecessary to do some academic research on the "Exemption Clause in the StandardContract", to search a better way to balance the interests of the two parties.This essay was commenced with the connotation of the exemption clause, firstly, itascertains the object of this research, and further analyzed the reasons for the existence ofthis kind of contract clause. The emerging of the exemption clause is the unavoidableresult of the development of contract and also the embodiment of the "Freedom ofContract". But the abuse of the exemption clause should be forbidden in the standardcontract. So, to the entering of the exemption clause into the standard contract, thereshould be some regulations to restrict it, such as the rule of notifying, the rule of course ofdealing. The exemption clause that written in the standard contract didn't becomeeffective all the time, the precondition is that it couldn't go against the legislation and theequitable principle. Then, the author focused upon the explanation of the exemptionclause of the standard contract, including the rules of explaining and the ways ofexplaining. Finally, this essay discussed the regulation of the exemption clause, from theangle of legislation, judicial practice and the administration. Although the exemptionclause has so many disadvantages, its broad use in the standard contract in our real life isstill undeniable. So, it's necessary for the legal researcher to do deeper analysis tomaximize the benefit of both parties and minimize the damages.