Exemption Clauses in Contracts – Fine Print Can Void Them

KVV Inc Attorneys

Published on: 04/03/2025

A shipping company's liability exemption clause was deemed unenforceable because it was in fine print and not conspicuously legible, appearing on later pages of a credit application the customer considered a mere formality. The court emphasized the customer's testimony that he didn't believe he was agreeing to unreadable terms. This case highlights the importance of clearly and conspicuously presenting exemption clauses to customers, especially in plain language, to ensure they form part of the contract. Suppliers should be mindful of consumer protection laws and the principle of "caveat subscriptor" (let the signer beware), which underscores the need for consumers to read all contract terms before signing.