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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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