Subject: Legal Aspect of Contract Case Study –Exclusion of Liability Clauses Ahm
ID: 427630 • Letter: S
Question
Subject: Legal Aspect of Contract
Case Study –Exclusion of Liability Clauses
Ahmed finds his usual parking place on an empty piece of land has been blocked off. Instead, he goes for the first time to a car parking building. A notice just inside the entrance to the carpark states:
‘The company will not be responsible for death, personal injury, damage to vehicles, or theft from them, due to any act or default of its employees or any other cause whatsoever.’
Ahmed receives a ticket when he enters the carpark which refers him to the contents of this notice.
When Ahmed returns to collect his car, he finds it has been stolen. He goes to report this to the carpark attendant and is injured when the attendant negligently allows the barrier to fall on Ahmed’s head.
Advise Ahmed as to the following:
1. What kind of contract term is the notice? Exclusion clause
2. Has the notice been incorporated into the contract? When is a contract formed at a carpark? Did he see the notice before that time?
3. What meaning will be given to the words used in the notice? Apply the contra proferentum rule?
4. What is the effect on the notice of the Consumer Rights Act 2015? Please refer to the sections of the Act which apply?
Note: in the above question the bold requirements are important to do
Explanation / Answer
. 1. This is an example of exemption clause that excludes the company's liability in the event of the breach of contract.
2. Yes. The notice has been incorporated into the contract as Ahmed, while entering into the car park and at the time of receiving the ticket, was referred to the notice.
3. The language in the notice is clear, where the parking lot owner disclaims liability for breach of contract with regards theft or damage to the vehicle or death or injury to the occupants due to default of any employee or any other reason.
4. According to the consumer rights act 2015 ( Part 2 - Unfair terms) a trader can not by a term of contract or by a consumer notice exclude or restrict liability for death or personal injury due to negligence. Further such exclusion is not to be taken as accepted by the consumer jsut because he knew about the terms of contract. As a result the terms excluding the liability of parking facility owner for death or injury due to negligence are against the consumer rights act.