The effect of the Consumer Protection Act on exemption clauses in standardised contracts

Abstract

This dissertation discusses the continued existence and enforceability of exemption clauses within the framework of the subsequent movement towards consumer protection. It is argued that the provisions of the Act will lead to the consequence that unfair exemption clauses will be phased out because it could be declared void in terms of this Act and consequently its use will become impractical. Although exemption clauses can be viewed as an essential part of most contracts, such clauses are regarded as one of the most contentious clauses in practice, because they usually exclude the liability of the supplier for losses resulting from defective performance. This Act will lead to a shift away from the strict rule of freedom of contract towards a position of consumer awareness and fair contracting. The Act further provides consumers with the right to, inter alia, good quality goods and services and guarantees these rights by prescribing and controlling the liability of the suppliers. As a result, liability due to defective goods and services may no longer be exempted through exemption clauses. Disputes regarding the fairness of such clauses must further also be considered in view of the guidelines set out in the Act. This study however welcomes the enactment of the Act and believes that it could benefit the country as a whole.