Cool it Ltd manufactures fridge freezers and regularly uses Move it Ltd, a road haulage company, to deliver products to its network of distributors. Recently Cool it Ltd requested Move it Ltd to deliver a quantity of fridges to a distributor in Penzance. When Move it Ltd took delivery of the goods, Cool it Ltd.'s distribution manager was given a consignment note which he failed to read. On the reverse there was a statement reading:
"Whilst Move it Ltd undertake to ensure the safety of goods, they cannot accept responsibility for any loss, damage or delay arising from the transportation of said goods."
On the way to Penzance and due to carelessness on the part of Move it's driver, Move it Ltd.'s lorry was involved in an accident which resulted in substantial damage to Cool it Ltd.'s appliances. Cool it Ltd is now suing Move it Ltd for the loss arising from the damage to its appliances.
Advise Move it Ltd.
This is an example of an exclusion clause. Outline the key problems associated with exclusion clauses and explain how an exclusion clause becomes incorporated into a contract.
How do the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contract Regulations 1999 ensure that exclusion clauses are fair and reasonable?
Will Move It Ltd be able to rely on this exclusion clause?