Business and Company Law

Exemption of Liability Clause

Pam owns a washing machine for years and needs repair recently. On the last occasion on which it broke down, she phoned Rocky, who has mended the washing machine in previous occasions. Rocky agreed the service charge excluding costs of parts. When he finished repairing, he asked Pam to sign a form stating that: By signing this form, the client has agreed that the work has been completed satisfactorily and the company accepts no liability for any loss or damage, death or personal injury caused by the negligence of its employees work. In any case, the companys liability is limited to a maximum of HK$1,000. Pam does not understand English so hesitated to sign but Rocky claimed that it was the same form that Pam has signed in previous occasions. She signed. The next time when Pam used the washing machine, it flooded, causing HK$1,000 worth of damage to Pams carpet. When Pam tried to switch it off, she received a powerful electric shock from the casing, which severely burnt her arm costing her HK$5,000 of medical treatment. Advise Pam her legal rights.