Reference no: EM133478494

Case: Cornwall Gravel wanted to submit a tender (offer) for a government contract. It contacted Purolator Courier to arrange delivery of the offer to the government office. Purolator collected the envelope at 6:00 pm on October 1. At that time, Cornwall Gravel told Purolator's employee that the envelope contained a "tender" and stressed that it had to be delivered by 3:00 pm on October 2. It then signed a bill of lading, which was presented by Purolator's employee, and which created a contract between Cornwall and Purolator. That contract contained a paragraph that said, "Purolator's liability for any loss or damage to the package shall be limited to $1.50 per kg based on the weight of the envelope." Because of the employee's carelessness, Cornwall's envelope was not delivered to the government office until 3:17 pm on October

2. As a result, the government refused to consider Cornwall's offer. The evidence indicates that if the envelope had been delivered on time, Cornwall would have received the government contract and would have earned a net profit of $700 000. Cornwall has therefore sued Purolator for breach of contract. In defence, Purolator says that (i) since the package weighed only 1 kilogram, damages must be limited to $1.50, and (ii) even if the exclusion clause does not apply, it should not be held liable for $700 000 because it did not know all the details concerning the contract that Cornwall hoped to receive from the government. What will the court decide. Find Law, Analysis, Remedies