The clutch slave cylinder can fail by losing it's internal seal.  When the seal fails, clutch (brake) fluid starts leaking all over the transmission (bell) housing.  Don't bother trying to rebuild the clutch slave cylinder with a seal kit, as the bore is usually pitted and scored from corrosion from moisture.  The seal kit can be an attractive economical alternative versus buying the entire clutch slave cylinder, but try and make sure your original clutch slave cylinder bore is clean and smooth.

With any of the clutch hydraulics, if your set (clutch master cylinder, clutch flex hose, and the clutch slave cylinder) is the original that came with the car, it is highly recommended to replace them all at the same time.  It is common to end up replacing all of them once one fails, as you end up replacing the weakest link in the chain and they all start to leak once you start replacing the aging components.
Clutch master cylinder Problems page
Clutch slave flex hose Problems page

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