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Question: hi friends need help with contract law instructions use irac...

Question details

Hi Friends, need help with contract law.

 

Instructions:

Use IRAC method.

Present your answer in the form of a memorandum of advice addressed to Dum. 

You are a member of a team of junior solicitors in a law firm. One of your clients is Mr Tom Wheel. Tom has just bought a business which is a trampoline and milkshake venue, Delta 50 Pty Ltd.  He bought the business pursuant to a contract for sale with Felicity Bounce.

Your supervising solicitor, Dum Lure, has asked the team to help with two aspects of the business.

First, she would like some help in drafting an exclusion clause which could be used for customers to limit Delta 50’s liability to the maximum extent possible.  She has asked you to propose some draft wording, as well as brief her on some of the background legal principles.

In particular, she would like to know:

How you would word the exclusion clause?

Why you are proposing your draft wording for the exclusion clause?

What the company should consider in making sure that customers are bound by the exclusion clause. Many of the customers are going to be children.

 

You have found the following clause on the law firm’s precedent data base:

11.6 Limitation on liability

(a)Except in the case of death or personal injury caused by the Supplier’s negligence, the liability of the Supplier under or in connection with this agreement whether arising in contract, tort, negligence, breach of statutory duty or otherwise must not exceed the Fees paid by the Company to the Supplier under this agreement. The provisions of 11.6(a) will not apply to clauses 11.4 or 11.7.

(b)Neither Party is liable to the other Party in contract, tort, negligence, breach of statutory duty or otherwise for any loss, damage, costs or expenses of any nature whatsoever incurred or suffered by that other Party of an indirect or consequential nature including any economic loss or other loss of turnover, profits, business or goodwill. The provisions of this clause do not apply to clauses 11.4 or 11.7.

(from LexisNexis, Australian Encyclopaedia of Forms and Precedents, Services Agreements,  492.1 Agreement for supply of services – pro supplier. )

 

 

 

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