After the fiasco of the negotiations with Shirley and Matilda Fishing Pty Ltd, Francisco decided that selling
Question:
After the fiasco of the negotiations with Shirley and Matilda Fishing Pty Ltd, Francisco decided that selling his fishing vessel was just too much trouble.
He has decided that the best way to make money from a commercial fishing vessel is to lease it for an annual rental fee.
As he takes the fishing vessel out for "one last spin", the engine begins to sputter and belch black smoke.
Obviously, Francisco would need to do some repairs to the Vessel before he could lease it to someone.
Francisco telephones his local boat repair shop, Port Adelaide Boat Motors, who agree to send out Bert, a mechanic, to repair the vessel.
Bert arrives in a towboat. After diagnosing the problem, he tells Francisco that the vessel can not be repaired at the docks. Bert says that the vessel would have to be towed to the shipyard. Francisco agrees to this.
Bert winches up Francisco's commercial fishing vessel in order to tow it to the shipyard, but a worn clip on the towing gear being used by Bert slips open, allowing the vessel to break free. The commercial fishing vessel drifts and crashes into the pylons. The bow of the ship and one of the outriggers is severely damaged in the crash. Displayed on the back of the towboat was a notice:
All towing takes place at customer's risk. Port Adelaide Boat Motors and their employees accept no liability for any damage, injury, or consequential loss, whatsoever caused, while a vessel is being towed.
Bert tells Francisco to step around to the back of the boat. Francisco climbs on to the towboat and walks to the stern of the ship.
Bert then pulls aside two tires that are blocking the sign.
He then points to the Exclusion Clause and says:
"Mate, we're not liable for any damage to your fishing vessel. This sign protects us from paying for the damage to your fishing vessel. That's what our lawyer says."
Francisco is very upset by this. He jumps off of the towboat and walks to his office.
He phones his lawyer right away and demands that he "sue" Port Adelaide Boat Motors.
DOES PORT ADELAIDE BOAT MOTORS PROVIDE REASONABLE NOTICE OF THE EXEMPTION CLAUSE? CAN IT BE PART OF THE CONTRACT WITH FRANCISCO?
Expert Answer:
Port Adelaide Boat Motors exclusion clause attempts to limit its liability for any damage injury or consequential loss that may occur while towing a v... View the full answer
