Asked by Adriana Davis on Jul 13, 2024
Verified
In Hunter Engineering Co. v. Syncrude Canada Ltd., the Supreme Court of Canada had to determine whether an exemption clause overrode the operation of the Sale of Goods Act. What did the Court determine?
A) Parties cannot contract out of the Sale of Goods Act.
B) An exemption clause is effective in all cases except when dealing with a fundamental breach.
C) An exemption clause that is inconsistent with the Sales of Goods Act is illegal and therefore void.
D) Except in cases involving a sale of goods, the presence of an exemption clause will protect a party from any misconduct.
E) Even in the face of a fundamental breach, it is possible for parties to exempt themselves from liability.
Exemption Clause
A contractual term that limits or excludes one party's liability for certain breaches or situations.
Sale of Goods Act
Legislation governing the sale of goods, providing rights to buyers and obligations to sellers, focusing on elements like product conformity and transactional fairness.
Fundamental Breach
A breach of a fundamental aspect of the contract that is not covered by an exclusion clause; a breach that goes to the very root of the contract.
- Recognize the applicability and limits of the Sale of Goods Act in various transactions.
Verified Answer
AS
Angela SharmaJul 15, 2024
Final Answer :
E
Explanation :
The Supreme Court of Canada in Hunter Engineering Co. v. Syncrude Canada Ltd. determined that even in the case of a fundamental breach, parties can exempt themselves from liability if the language of the contract clearly indicates this intention.
Learning Objectives
- Recognize the applicability and limits of the Sale of Goods Act in various transactions.