Exclusion clause to avoid liability

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Reference no: EM133229605

Peter runs a printing business. In April 2022 negotiations were conducted by Peter with Best Carrier Ltd entirely by telephone, with respect to the delivery by this company of a new piece of expensive machinery, with Peter emphasising to the CEO of Best Carrier Ltd that if the machinery was damaged in transit it would cause him delays in the completion of a job for Monash University; his biggest client.

The machinery was indeed damaged in transit due to the fact that the relevant Best Carrier Ltd truck driver lost control of the truck and hit a tree. Police investigations subsequently revealed that, at the time of the accident, the truck driver was drunk and, as a result, vastly exceeded the legally-permitted blood alcohol concentration limit for fully licensed drivers in Victoria. When the damaged machinery was delivered to Peter, one of his employees signed a form which contained an exclusion clause. The exemption clause excluded liability for damage "caused by any acts or defaults of the carrier or otherwise". Peter's employee did not read the form.

Can Best Carrier Ltd rely on the exclusion clause to avoid liability, according to the law of contract?

Do not discuss the Australian Consumer Law. Please refer to any relevant legal cases and/or legislation to support your arguments.

Reference no: EM133229605

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