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  Home > Law > Law glossary > Law glossary

Ailsa Craig Fishing Co Ltd v Malvern Fishing Co (1983)

Last modified: Thu Feb 23 16:37:37 2006

This case (1983] 1 W.L.R. 964) demonstrates the difference in interpretation between Contract.contract clauses the seek to exclude liability (see: Contract.exclusionClause) and those that seek to limit it in some way.

In this case the owner of a vessel contracted with a security firm for its services. In the contract was an exclusion clause, rejecting all liability in certain circumstances, and another clause that limited liability in others. The vessel's owners suffered damage estimated at £55,000 as a result of the admitted negligence and breach of contract by the security firm. Despite the breach of contract, it was held that the limitation clause remained valid, as it reflected the true intentions of the contracting parties. Given the scale of the breach of contract, it is possible that a full exclusion clause would have been struck down.

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