10.
| (1) A contract term which is effective, under this Act, only in so far as it satisfies the requirement of reasonableness satisfies that requirement if the contract term is a fair and reasonable one to be included having regard to the circumstances which were, or ought reasonably to have been known to or in the contemplation of the parties when the contract was made. |
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| (2) In determining for the purposes of section 7 whether a contract term satisfies the requirement of reasonableness regard shall, without prejudice to the generality of subsection (1), be had to the matters set out in the Second Schedule to this Act. Nothing in this subsection shall be read or construed as preventing a Court or an arbitrator from holding, in accordance with any rule of law, that a term which purports to exclude or restrict any relevant liability, is not a term of that contract. |
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| (3) A notice (not being a notice having contractual effect) which is effective, under this Act, only in so far as it satisfies the requirement of reasonableness, satisfies that requirement if it is fair and reasonable to allow reliance on it having regard to all the circumstances obtaining when the liability arose or would have arisen. |
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| (4) Where by reference to a contract term or notice a person purports to restrict his liability to a specified sum of money and the question arises whether such term or notice satisfies the requirement of reasonableness regard shall be had to"
| | (a) the resources which such person could expect to be available to him for the purpose of meeting the liability should it arise ; and | | |
| | (b) how far it was open to such person to cover himself by insurance. | | |
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| (5) It is for the party claiming that a contract term or notice satisfies the requirement of reasonableness to show that it does. |
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Sri Lanka Consolidated Acts