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An Case Between Fiona 's Company Film Fun And Goliath Plc

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This case between Fiona 's company Film Fun and Goliath plc concerns exemption clauses and whether Film Fun plc, as the injured party, can seek legal relief against Goliath plc. Protection from such unfair terms is offered by the common law, most noticeably the Unfair Contract Terms Act (UCTA) 1977 and Unfair Terms in Consumer Contract Regulations (UTCCR) 1999. Many factors surrounding the clause are to be considered such as its incorporation and construction into the contract as well as legislation. As no statement of opinion was made to induce Fiona to agree to the contract, Goliath plc is not liable for any form of misrepresentation , however it is likely she can use breach of confidence as her course of action. Exemption clauses are a …show more content…

Unless Goliath plc understood Fiona to be effectively illiterate, no measures need be taken by the courts to assess whether sufficient notice was given . Outweighing this point is the red hand rule, made during the Spurling case by Denning LJ: 'Some clauses which I have seen would need to be printed in red ink on the face of the document with a red hand pointing to [them] before the notice could be held to be sufficient '. This rule provides that the onerous exemption claims require a greater degree of notice to be given to the other party. Goliath plc 's refusal to be liable for losses that exceed the hire charge is in a sense exclusionary as both companies are part of an industry where Film Fun plc is expected to make a profit. Thus, the court will indeed treat it as onerous; it should have been brought to Fiona 's attention to give her a better understanding. Goliath plc made minimal effort to alert Fiona about the clause and so this unfair term was not properly incorporated into the contract between the two. Consequently, Goliath plc is in breach as it could not complete contractual obligations or even avoid liability for doing so. Appropriate wording of the exclusion clause is essential to assert whether it can cover what has occurred under the contract. Goliath plc 's clause impliedly seeks to exclude liability for any potential negligence and so the Canada Steamship

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