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ARTICLE · 08 APRIL 2009

So You Excluded Consequential Loss In A Contract…Or Did You?

Clayton Utz
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Your company’s current exclusion clauses or contractual caps might operate in a way you did not anticipate at the time the contract was made.

AustraliaConsumer Protection
Jocelyn Kellam
Jocelyn Kellam
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Environmental Systems Pty Ltd v Peerless Holdings Pty Ltd [2008] VSCA 26

  • Your company's current exclusion clauses or contractual caps might operate in a way you did not anticipate at the time the contract was made.
  • Exclusions or caps will be interpreted, however, in the context of the contract, so there is no need for alarm.
  • We suggest you review your existing contracts and be careful about the way you handle direct and consequential loss in future contracts.

If you have made, or are making, a contract which limits liability (your own or the other party's) for consequential loss - and most companies will have - they you might want to review them because a new decision from Victoria could change the meaning of this type of loss.

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