Customer during performance of the contract


PROBLEM – ROLAND’S HOUSE

Roland buys a country mansion in Wiltshire and decides to have the gardens landscaped. He telephones CanDo Ltd after seeing the company’s advertisement in the local newspaper stating:

Paths, fencing and garden maintenance our speciality – also quotations given for larger jobs.

Roland decides to enter into a contract with CanDo Ltd. A price of £10,000 is agreed and Roland is given a document headed ‘Memorandum of Terms’. This document sets out the job specification, price and date of completion. On the reverse side of the Memorandum of Terms the following clauses have been added by rubber stamp:

Clause 1: The company accepts no responsibility for personal injury to the customer during performance of the contract.

Clause 2: Liability for any damage to the customer’s home is limited to the sum of £500 and no liability can be accepted for loss of, or damage to, the customer’s goods.

Henry, employed by CanDo Ltd, drives a truck through the wall of Roland’s house. As Roland returns home that night, he collides with the truck which Henry has left in the middle of the driveway with no lights on. Roland’s car is completely ruined and Roland is injured.

ADVISE Roland.

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Business Law and Ethics: Customer during performance of the contract
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