Question 2 - Exclusion Clauses

Dion, is the chief executive officer of a

statutory body and has to attend numerous meetings in remote areas of South Australia.He normally drives his car.However, an urgent meeting in Port Lincoln required his presence, and given the time constraints, he decided to charter a small plane to fly him there. He made arrangements over the phone with Boston Blue Charter Flights (BBC) and provided payment.

On his way to the airport, on the day of departure, Dion realised that he had not received any paper work from BBC for his Port Lincoln flight. It was his first time on a charter flight. When he arrived, displayed in the hangar was a notice:

'The operator of Boston Blue Charter Flights accepts no responsibility for any loss or injury suffered by passengers regardless of the cause of such loss or injury.'

The pilot crash landed at Port Lincoln which resulted in serious injuries being suffered by Dion.

Does the sign prevent Dion from suing BBC for compensation?

Using relevant legal principles of contract law, discuss whether:

(a) the contract between Dion and BBC includes an exclusion clause; and

(b) assuming the exclusion clause was part of the contract, would it also cover the incident?

(10 Marks)