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ACCA LW · Chapter 3 · Question 6 of 10

Lia signs a written contract to buy equipment without reading it. The contract contains an exclusion clause. There is no misrepresentation about its contents. Applying L'Estrange v Graucob, what is the position?

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Reveal answer & explanation

Correct answer: A) Lia is bound by the clause because she signed the document

Explanation

Where a person signs a contractual document they are generally bound by its terms whether or not they read them. The position differs if the effect of the clause was misrepresented (Curtis v Chemical Cleaning and Dyeing Co). Whether the clause is ultimately effective may still depend on statutory controls such as the Unfair Contract Terms Act 1977.

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