$21$:$45$

$($L$)VO)4G$

Grace, an accountant, has recently won a lucrative contract from Expansion Ltd to undertake all the company's payroll work. The initial period is for six months, renewable thereafter on a $12$ monthly basis as long as the work done by Grace is satisfactory.

In order to undertake the work for Expansion Ltd$,$ Grace hires a powerful desktop computer together with dedicated software from Office Supplies Ltd$.$ Grace signed a written hire contract with Office Supplies Ltd but she did not read it$.$ It contained a clause stating that 'Office Supplies Ltd is not liable for any financial losses or other losses, however caused, occasioned by using hardware or software products supplied by the company', Neither the computer nor the software operated correctly because of negligent design and manufacture by the company and as a result Grace failed to make proper National Insurance deductions for the employees of Expansion Ltd$.$ Expansion Ltd consequently refused to renew the contract with Grace and she has suffered considerable loss in her profits as a result. In addition, because the desktop computer had been negligently manufactured by Office Supplies Ltd$,$ Grace suffered damage to her eyes as a consequence of using the machine.

Office Supplies Ltd admits that it has been negligent but denies any liability to Grace on the basis of the exclusion clause in the contract.

Question $10$

In relation to the law of contract, has the exemption clause been incorporated into Grace's contract with Office Supplies Ltd$?$

A Yes because Grace signed the contractual document

A No because she did not read it

B Yes because Grace is an accountant and so she ought to know she ought never to sign things without reading them first

Question $11$

In relation to the law of contract, does the exemption clause satisfy the contra proferentem rule?

A Yes because Grace signed the contractual document

$B$ Yes because its wording is clear

C No because its wording is unclear

Question ${12}_{?}$

In relation to the damage to Grace's eyes, what is the status of the exemption clause $u$ the Unfair Contract Terms Act $1977?$

A It is void and this means that Grace cannot sue Office Supplies Ltd

B It is void and this means that Grace can sue Office Supplies Ltd

$C$ It is void unless Grace proves that it is unreasonable

D It is void unless Office Supplies Ltd proves that it is reasonable

Question $13$

In relation to Grace's loss of profits with her deal with Expansion Ltd$,$ what is the status of the exemption clause under the Unfair Contract Terms Act $1977?$

A It is void and this means that Grace cannot sue Office Supplies Ltd

B It is void and this means that Grace can sue Office Supplies Ltd