ACCA LW · Chapter 3 · Question 8 of 10
An exclusion clause is ambiguous and could be read in two ways, one of which favours the party seeking to rely on it. Which rule of interpretation will the court apply?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The contra proferentem rule, construing the ambiguity against the party relying on the clause
Explanation
Under the contra proferentem rule any ambiguity in an exclusion clause is resolved against the party who inserted it and seeks to rely on it. This reflects the courts' traditionally strict approach to exclusion clauses. The other rules listed relate to statutory interpretation or contract formation rather than the construction of exclusion clauses.
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