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EXCLUSION CLAUSE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › EXCLUSION CLAUSE

  • This topic has 2 replies, 1 voice, and was last updated 1 year ago by MikeLittle.
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  • July 26, 2023 at 8:36 am #688888
    whydoyoucare
    Participant
    • Topics: 50
    • Replies: 46
    • ☆☆

    Andy’s company operates a fleet of haulage trucks that transport goods to commercial depots and warehouses all around the country. Andy himself often works as a truck driver, delivering goods. At the depot of one of Andy’s clients, Hazelwood Ltd, the following notice is in place.

    “For commercial delivery use only. The use of these facilities is strictly at your own risk and Hazelwood Ltd accepts no liability whatsoever for any damage or injury sustained by either those using this facility or their vehicles or property, no matter how caused.’
    Andy was aware of the notice, but had never paid much attention to it. However, one day, after delivering some goods to Hazelwood Ltd, he returned to his truck to find that it had been badly damaged by a towing vehicle driven by an employee of Hazelwood Ltd. Whilst on his way to the office to complain, he wos hit by the same towing vehicle. As a result, not only was his truck severely damaged, but he suffered a broken leg and was off work for eight weeks.
    Hazelwood Ltd has accepted that its employee was negligent on both counts but denies any liability, relying on the exclusion clause.
    (a)
    Which TWO of the following are characteristics of valid exclusion clauses?
    1)Excludes all liability on a contract altogether
    2)Restricts liability on a contract by limiting damages
    3)Excludes onerous conditions in the contract
    4)Excludes certain contract terms from applying in certain situations

    I know answer is 2, but I thought the other would be 4. But it’s 1. HOW AND WHY? And why not 4?

    (b)
    Will Andy receive damages from Hazelwood Ltd in respect of the following:

    The damage to his truck:
    The injury to his leg:

    The answer to both is will recieve damages. I know under UCTA personal injury due to negligence can’t be excluded. So they will recieve damages. But why fir truck damage??

    July 26, 2023 at 4:12 pm #688951
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23311
    • ☆☆☆☆☆

    First question – I’m with you on this. I believe the correct answer is 2 and 3.

    It cannot be option 1 – it’s not possible to exclude liability for personal injury.

    Similarly, it’s not valid to exclude onerous conditions

    OK?

    July 26, 2023 at 4:20 pm #688952
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23311
    • ☆☆☆☆☆

    Will Andy receive damages from Hazelwood Ltd in respect of the following:

    The damage to his truck:
    The injury to his leg:

    The answer to both is will receive damages. I know under UCTA personal injury due to negligence can’t be excluded. So they will receive damages. But why for truck damage??

    Again, I’m in the position of having to disagree with the printed solution. I totally agree with your observation that UCTA cannot exclude liability for negligence resulting in personal injury or death.

    But the position re the truck damage … the reality depends on reasonableness, is it ‘normal’ in the industry, to what extent is Andy able to insure against this damage.

    It’s the nature of multiple choice law questions that it’s extremely difficult to provide such level of detail as to be able to come to definitive answers.

    So, as in my answer to your earlier question, I’m in agreement with you and I have to disagree with the printed solution.

    Sorry! But these are surely not OT errors, are they?

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