EXCLUSIONS, LIMITATIONS, REASONABLENESS, NON-RELIANCE AND ENTIRE AGREEMENT CLAUSES

Watford Electronics Ltd v Sanderson CFL Ltd ((2001) unreported, 23 February, CA)

1. A clause in a commercial contract which acknowledges that the claimant has not, outside the terms of the written agreemen, relied on the respondent in acquiring goods or services can take effect as an evidential estoppel, provided it is shown by the respondent to satisfy the three requirements in Lowe v Lombank Ltd [1960] 1 All ER 611, CA: see E A Grimstead & Son Ltd v McGarrigan (1999) unreported, 27 October. Such a clause (which is commonly subsumed under an ‘entire agreement’ clause) seeks to prevent a party to whom a pre-contract representation has been made from claiming that he relied on it.