XN000022-1989-05-19 — Page 4

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FRIDAY, MAY 19, 1989

TO EXEMPTION

THE CONTROLS WOULD, FOR EXAMPLE, BE INAPPLICABLE CLAUSES IN AN ASSIGNMENT, MORTGAGE OR LEASE OF LAND WHICH RELIEVE THE

OF IN RESPECT

ANY ERROR. ASSIGNOR, MORTGAGOR OR LESSOR OF LIABILITY MISDESCRIPTION OR MIS-STATEMENT RELATING TO THE PROPERTY.

"THE CONTROLS WOULD. HOWEVER, APPLY TO EXEMPTION CLAUSES

MIS-STATEMENTS

IN

A

SALES BROCHURE OR RELATING TO SUCH THINGS AS

OR MIS-STATEMENTS BY AUCTION CATALOGUE. NEGLIGENT VALUATION REPORTS THE VENDOR OR

USE OR PAST ΤΟ HIS

AS SOLICITOR

THE PERMITTED PROFITABILITY OF THE PREMISES. MR CHAN SAID,

H

THE PROPOSED LEGISLATION IS CLOSELY

UNFAIR CONTRACT TERMS ACT 1977.

MODELLED ON THE ENGLISH

THIS WAS RECOMMENDED BY THE LAW REFORM COMMISSION PUBLISHED A "REPORT ON THE CONTROL OF EXEMPTION CLAUSES" 1986.

(LRC). WHICH

IN

DECEMBER

THE COMMISSION CONCLUDED THAT, PARTICULARLY WHERE TO A CONTRACT DID NOT HAVE EXEMPTION CLAUSES LED TO ABUSE.

THE

PARTIES

EQUAL BARGAINING

STRENGTH,

THE

USE OF

THAT THE

BENEFITS OF SOME CONTROL BY CHANGES TO

THE LRC ALSO CONSIDERED WOULD OUTWEIGH ANY DISADVANTAGES THAT MIGHT BE CAUSED THE LAW OF CONTRACT.

LEGISLATION WOULD NOT BE MR CHAN SAID THAT, IF ENACTED, THE

AFTER ENACTMENT. THIS WOULD BROUGHT INTO OPERATION UNTIL 12 MONTHS

THEM AND, ALLOW BUSINESSMEN TIME TO REVIEW EXEMPTION CLAUSES USED BY IF NECESSARY, TO AMEND THEM.

HE SAID

HAD BEEN

CONDUCTED,

PROFESSION,

THE

PUBLIC CONSULTATION EXTENSIVE

THE CHAMBERS

LEGAL OF COMMERCE, INVOLVING MAJOR

HONG KONG ASSOCIATION CONSUMER COUNCIL, THE INSURANCE INDUSTRY. THE

LRC'S OF BANKS AND OTHER ORGANISATIONS THAT EXPRESSED INTEREST IN THE REPORT.

THE BILL IS EXPECTED TO COUNCIL ON MAY 31 THIS YEAR.

BE INTRODUCED INTO

THE LEGISLATIVE

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