Asked by Akwinder Chattha on May 14, 2024
Verified
In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?
A) The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms.
B) The purchaser of goods, after the sale, is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page.
C) The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature.
D) There has been a breach of the fundamental obligation of the contract, and the court holds that, on its true construction, the parties did not mean it to cover a serious breach.
E) The exemption clause that covers the situation was posted in plain view and was brought to the buyer's attention at the place and time of contract.
Exemption Clause
A contractual term that limits or excludes one party's liability for certain breaches, circumstances, or events.
Fundamental Obligation
An essential or core duty that is imposed by law, contract, or moral imperative, critical to the framework within which it exists.
Breach of Condition
A violation of a specific condition set forth in a contract, which may entitle the non-breaching party to terminate the contract and seek damages.
- Assess the legal validity and restrictions associated with exemption clauses in contracts.
Verified Answer
MB
Mikey BarileMay 20, 2024
Final Answer :
E
Explanation :
E) is the most likely scenario where the seller could successfully use an exemption clause to escape liability, as it was clearly visible and acknowledged by the buyer at the time of the contract, making it part of the agreement between the parties.
Learning Objectives
- Assess the legal validity and restrictions associated with exemption clauses in contracts.