The principle that even where the contract contains an exemption clause, still the party claiming exemption cannot escape the liability where he is guilty of fundamental breach of the contract refers to :
standard form of contract
The doctrine of fundamental breach arose in connection with standard form contracts, where one party with superior bargaining power imposes exemption (exclusion) clauses on the other, who has to take it or leave it.
Courts developed the rule that an exemption clause cannot protect a party who commits a fundamental breach, i.e. a breach that goes to the root of the contract (Karsales (Harrow) Ltd v. Wallis; Suisse Atlantique, later modified in Photo Production v. Securicor). In India, Central Inland Water Transport Corp. v. Brojo Nath Ganguly applies similar protection against unconscionable standard-form terms.
E-contracts concern formation by electronic means and quasi contracts (Secs. 68-72) are obligations imposed by law without agreement, so neither addresses exemption clauses.
Hence, the answer is standard form of contract.
Similar Questions
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Unless there is .................., there can be no contract.
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The finder of goods has a right of .................... over the goods for his expenses.
Which of the following is not an example of implied consent for discharge of contract ?
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Read Assertion (A) and Reason (R) and with the help to codes given below, point out the correct explanation :
Assertion (A) :
An acceptance is to a proposal what a lighted match is to a train of gunpowder.
Reason (R) :
Acceptance converts the offer into a promise and then it is late to remove.
Breach of contract can result in for :
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Important Questions from Indian contract acts, 1872
Which is the term used for a contract where both the parties to the contract have fulfilled their obligations under the contract?
As per Section 73 of the Indian Contract Act, 1872, in estimating the loss or damage arising from a breach of contract, what must be taken into account?
As per the Indian Contract Act, 1872, the revocation of a continuing guarantee by the death of a surety operates:
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Unless there is .................., there can be no contract.
