Ltd Driver
Ltd Driver
how effective is this exclusion clause(in add. details), with reference to relevant law?
MM Ltd hires out coaches and drivers to local businesses. Showmagic Ltd hired a minibus & driver from Mm. The minibus crashed due to driver negligence, injuring several passengers and damaging computer equipment. M has refused to accept liability and points to the clause written on the back of the sales document it had given to Showmagic
"Mm do not accept any liability whatsoever for loss no matter howsoever caused'
Not very effective.
These types of clauses are frowned upon by courts. They must generally be a clear part of the original contract. When they are particularly harsh and tend to operate against public policy (like a complete liability waiver despite being at-fault) then they must be conspicuously marked, in bold type for example.
Putting such a clause on the back of the document so it may not be seen by the person signing the contract certainly is not conspicuous. Because of this courts tend to construe the clause AGAINST the person who is benefited by it, especially if they also wrote the contract. If the thing that goes wrong which a person is claiming for is outside the scope of the agreement as contemplated by the parties, then the exclusion clause may not operate either. This is basic contract interpretation...you generally cannot "sneak" an element into the contract which is severely detrimental to the other party such as this one. Both parties must KNOW what they are contracting for when they execute an agreement. Thus Courts would generally not support MM Ltd.
Citations and law vary by state. That part of your homework you'll have to do yourself.
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