Exemption Clauses

• A terms of a contract that attempts to modify the principal obligations arising under the contract , or to limit/exclude the liability of a party in the event of his breach of his obligations to perform the contract  
• Example of term : "X is not liable for any loss or damage or injury however causes resulting from the use of the facility "
• However , there is a rule relating to "fundamental breach" : if a party to the contract breaches an important or fundamental term , the party in breach will not be protected by the exemption clauses . 
• Example : Based on the same example above , C entered into a contract with Y to provide gymnasium facilities for the use of Y but the facilities were faulty and caused physical injury to Y  . IN this case , x would lose protection by the exemption clause . 
• Statutes (e.g. Sale of Good Act 1957 ) can modify the effects of exemption clauses with the view to better protection of consumers .