COMM 393 Lecture Notes - Lecture 8: Lift Ticket, Common Carrier, Endangerment
Document Summary
In contract, a party often runs a significant risk of harm to the other party through some failure in the course of performing the contract. To protect against potential liability there are three options: Party may obtain insurance against the risk and raise its prices. It may be a self-insurer and charge a higher fee to build up a contingency fee. May insist upon exemption clauses excluding itself from any liability for the risk and transferring the risk of harm to its customer. Exemption clause a clause in a contract that exempts a party from liability for failing to perform some or all of its contractual obligations. Requirement of adequate notice: accepting party must be adequately notified of terms of contract to be valid. Such as ticket, receipt, visible signs at time of acceptance. If sued after all, will disclaim liability and avoid question of extent of liability. Supplier can take advantage of stand contract forms.
