First Principles of Business Law
Quiz: The contents of a contract

Question 15

 

 

A leaves his car at B’s garage for repairs.  It is agreed by A and B that B will not be liable for any damage to A’s car while it is in B’s possession.  After repairing A’s car, B decides to drive it home that night because his own car refuses to start.  A’s car suffers damage when B carelessly collides with the gatepost at his home.  In the light of these facts, which one of the statements below most accurately reflects Australian Law? 

 

(a)  The ‘four corners’ rule would apply in these circumstances with the result that B could rely on the exclusion of liability clause agreed with A.

(b)  The ‘four corners’ rule would apply in these circumstances with the result that B could not rely on the exclusion of liability clause agreed with A.

(c)   The ‘four corners’ rule would not apply in these circumstances with the result that B could rely on the exclusion of liability clause agreed with A.

 

 

 

 

 

 

  
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