The assignment is in the form of a problem question dealing with exclusion of liability and consideration.
Commercial Vehicle Repairs PLC (“CVR”) repairs vehicles for small businesses. Last month it entered in to repair contracts with (among other customers) Parsons Plumbing Ltd (“PPL”) and Bright Sparks Ltd (“BSL”).
PPL’s managing director, Iwan Parsons, telephoned CVR to arrange the repair of one of its vans and its truck. After the telephone conversation, CVR sent a quotation for the job (see Document A).
Iwan read the quotation but did not look at the terms and conditions set out on the back, an extract from which appears as Document B. He telephoned CVR and explained the importance of finishing the jobs properly and on time, as the vehicles were crucial for cash flow. He said that PPL would be accepting the quotation.
BSL had been a customer of CVR’s for at least 10 years, and every 6 months its vehicles go to CVR for maintenance. CVR’s latest contract with BSL was to service a transit van for £150 (plus the cost of any replacement parts). A date for the work was agreed and CVR agreed that if the van was dropped off by 8:30 am the work would be completed by 4:00 pm on the same day. The first document that BSL received was the invoice after the job was finished. On the back of the invoice were the same terms and conditions mentioned above (Document B).
There have been a number of difficulties:
o • PPL’s van came to CVR with engine problems. CVR’s employee, Bill, reinstalled the radiator without attaching one of the pipes correctly. As a result, the engine overheated and failed. It needs to be replaced at a cost of £2,000. PPL has lost 10 days’ plumbing jobs, amounting to a £10,000 loss of profit.
o • On PPL’s truck, a defective engine management system unit was fitted, so, 2 days after the repair, the engine did not start and PPL has been unable to use the truck for 5 days. As a result, it has lost another £5,000 profit.
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• On the date agreed for CVR to service BSL’s van, the vehicle was dropped off at 8:15 am but when an employee went to collect it at 4:00 pm, he was told that it was not ready. CVR apologised, but said that it had been busy and that the van would not be ready to collect until the following day. As a result, BSL lost £500 profit.
Advise CVR as to its legal position in relation to PPL and BSL .
© The University of Law Limited 2015 56 W300 eTMA Guide Oct 2015
COMMERCIAL VEHICLE REPAIRS PLC Specialists in vehicle repairs since 1960 Unbeatable prices
Registered office: Unit 4, Diesel Avenue, ZF1 2AB VAT Registration: 553967383
Parsons Plumbing Ltd. 33 Dogleg Drive
PRODUCTS AND WORK
Materials as per schedule Labour as per schedule
Total Net Amount Total VAT Amount
Payable on completion
ALL WORK / MATERIALS SUPPLIED SUBJECT TO CVR STANDARD TERMS OF BUSINESS OVERLEAF.
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COMMERCIAL VEHICLE REPAIRS PLC
Standard terms of business
1. 7.2.1 Liability of CVR for any loss of profit arising from failure to exercise reasonable care and skill in the performance of the contract shall be limited to £50 per day.
2. 7.2.2 CVR will not be liable for any damage arising from lack of quality of goods or unfitness of goods for any purpose made known.
3. 7.2.3 CVR shall have no liability for any loss caused by delay or for any loss or personal injury caused by negligence.
…………………….. In this assignment, we are looking for you to demonstrate that you have met the assessment criteria in the following ways:
Knowledge and understanding
You will need to show that you know and understand the law relating to exclusion of contractual liability (including the common law rules of incorporation and construction and the statutory controls, such as the Unfair Contract Terms Act 1977).
You will need to analyse the facts of the question, identify the key issues and relevant legal principles, apply the law to the facts, form a coherent legal argument, and reach a reasoned conclusion.
Practical and professional skills
You must identify exactly what needs to be researched and then formulate and demonstrate an effective research strategy. You should structure your answer so that the arguments are easy to follow and cite appropriate authorities for legal principles. Finally, you need to demonstrate that you can solve the problem and effectively advise the client.
Present your answer in a logical, clear and concise manner using a writing style appropriate for problem questions.