BetterLawNotes-5 (2)

CONTRACT LAW

Consider what liability, if any, Dex has to Cody in the following scenario: 

 Dex agrees to supply and install a sunbed in Cody’s apartment for use by Cody. Dex and Cody agree an installation date of 1st July. Cody is to pay the price of £5,000 in full the day before installation. Cody asks Dex if there is anything to sign. Dex replies: ‘I’ll pop a copy of my terms and conditions through your door tomorrow. Check that you’re happy with them’. Two days later, Dex posts a copy of his terms and conditions through Cody’s door. However, they are immediately eaten by Cody’s dog, so Cody never sees them. Had he done so, he would have read the following clauses: 

 ‘1. Dex’s liability for loss or damage arising out of negligence shall not exceed the contract price. 

 Subject to the above, Dex shall have no liability for breach of any condition, term or warranty, express or implied.’

 On 30th June Cody pays Dex the £5,000. The following day Dex installs the sunbed. When bringing the sunbed into Cody’s apartment, Dex carelessly knocks over Cody’s plasma television screen, causing £2,000-worth of damage.  

 When Dex has left, Cody decides to try out the sunbed. Because of a defective thermostat, the sunbed overheats and starts a fire in the apartment. Cody suffers serious burns, and the apartment sustains damage in the amount of £4,000. It costs £1,000 to repair the sunbed.  

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