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First Principles of Business Law |
| The contents of a contract |
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4. Terms that exclude or limit liability |
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4.5. Interpreting exclusion and limitation clauses continued... |
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Read the facts and the question and then choose the best answer. A, a dry-cleaner, agrees to clean B's expensive coat. B agrees that A will not be liable for any damage to the coat. After cleaning the coat, but before B collects it, A borrows it and wears it on the way home. Unfortunately, the coat catches in A's car door and is damaged. Does the exclusion of liability clause protect A from liability for this damage to B's coat? |
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(a) Yes, because the meaning of the clause is clear, and because it was agreed to by both parties. (b) No, because the damage occurred while A was doing something wholly outside of the cleaning contract. |
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