FRIDAY, MAY 19, 1989

2

PURPORTS UNDERTAKINGS

AN EXEMPTION CLAUSE WOULD ALSO BE INEFFECTIVE IF IT

IMPLIED TO EXCLUDE OR RESTRICT LIABILITY FOR A SELLER'S AS TO THE TITLE TO GOODS SOLD OR THE QUALITY OF GOODS SUPPLIED.

ΤΟ

"THUS. IF A PERSON SELLS A STOLEN CAR AND THE PURCHASER HAS

THE TRUE RETURN IT TO

OWNER, AN EXEMPTION

IN CLAUSE

THE SALES TO COMPENSATE CONTRACT COULD NOT RELIEVE THE SELLER OF HIS LIABILITY THE BUYER, MR CHAN EXPLAINED.

"SIMILARLY, IF A CONSUMER AGREES TO BUY OR HIRE A WELL-KNOWN IS DELIVERED. AN MAKE OF TELEVISION SET BUT A DIFFERENT MAKE OF SET EXEMPTION CLAUSE COULD NOT RELIEVE THE DEALER OF LIABILITY FOR OF CONTRACT,' HE ADDED.

I

MR CHAN SAID THAT IN CERTAIN CIRCUMSTANCES AN EXEMPTION

BE EFFECTIVE PURPORTING TO EXCLUDE OR RESTRICT LIABILITY WOULD IN SO FAR AS IT SATISFIED THE REQUIREMENT OF REASONABLENESS.

AS ILLUSTRATIONS, HE GAVE THE FOLLOWING EXAMPLES:

*

BREACH

CLAUSE ONLY

IF A FIRM OF DRY CLEANERS NEGLIGENTLY LOSES A SUIT LEFT WITH IT BY A CUSTOMER, A CLAUSE PURPORTING TO LIMIT THE LIABILITY OF THE FIRM IN

OF THAT LOSS WOULD BE SUBJECT TO THE REASONABLENESS TEST;

RESPECT

THE CAR IF I A WOMAN BOOKS A CAR FOR HER WEDDING DAY AND FAILS TO ARRIVE OR (11) A SUPPLIER OF OFFICE EQUIPMENT (WHO USES STANDARD TERMS OF BUSINESS) FAILS TO DELIVER EQUIPMENT THE CONTRACTED FOR. AN EXEMPTION CLAUSE PURPORTING TO LIMIT LIABILITY FOR A BREACH OF CONTRACT WOULD BE SUBJECT TO THE REASONABLENESS TEST:

IF A PERSON HIRES FOR HIS BUSINESS A PHOTOCOPYING MACHINE AND,

ON ARRIVAL. THE MACHINE DOES NOT WORK. A CLAUSE PURPORTING TO EXCLUDE LIABILITY FOR

DEFECTS SUBJECT TO THE REASONABLENESS TEST:

ANY

WOULD BE

A

CLAUSE

WHERE A RESTAURANT OFFERS A VALET PARKING SERVICE, WOULD BE SUBJECT TO THE REASONABLENESS TEST IF IT REQUIRED THE CUSTOMER TO INDEMNIFY THE RESTAURANT AGAINST LOSS CAUSED TO THIRD PARTIES BY THE NEGLIGENT DRIVING OF ITS EMPLOYEE.

OF CONTRACT THAT

ARE

SCHEDULE 1 OF THE BILL LISTS THE TYPES EXCLUDED FROM CERTAIN OF THE STATUTORY CONTROLS.

DISSOLUTION

THESE INCLUDE CONTRACTS RELATING TO INSURANCE, INTERESTS IN LAND, INTELLECTUAL PROPERTY, SECURITIES, THE FORMATION OR OF COMPANIES AND THE RIGHTS AND OBLIGATIONS OF MEMBERS OF COMPANIES.

FROM THE

AS REGARDS INTERESTS IN LAND. A CONTRACT IS EXCLUDED CONTROLS ONLY "SO FAR AS IT RELATES TO THE CREATION OR TRANSFER OF INTEREST IN LAND, OR TO THE TERMINATION OF SUCH AN INTEREST",

AN

/THE CONTROLS

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