Feedback

 

(a) That's wrong. Although the courts will enforce terms in a contract that limit or exclude a liability that otherwise would exist, they will interpret such terms strictly, and only give them effect to the extent that they are clear and unambiguous. The courts will not interpret limitation clauses generously, to give them wider effect than necessary.

See Sydney Corporation v West.

In the present case, the clause clearly states "In any claim for breach of contract…"

If Miles chooses to bring his action on the basis of Negligence rather than breach of contract, the limitation clause does not apply and Miles could claim damages to compensate for the full extent of his losses.

Accordingly, (c) is the best answer.