Cases - Smith v South Wales Switchgear

Record details

Name

Smith v South Wales Switchgear

Date

[1978]

Citation

1 WLR 165 HL

Legislation

• Unfair Contract Terms Act 1977
• Unfair Terms in Consumer Contract Regulations 1999

Keywords

Contract – indemnity clauses – negligent party relying on indemnity clause - rule of contra proferentem; whether contra proferentem applies to indemnity clauses

Summary

The House of Lords confirmed that the contra proferentum rule applies to indemnity clauses as it applies to exclusion clauses. In this case, Lord Keith said:

'It is well established that indemnity will not lie in respect of loss due to a person's negligence or that of his servants unless adequate or clear words are used or unless the indemnity could have no reasonable meaning or application unless so applied.'