Case

Abid regularly took his car to be serviced at his local garage, Bust Ltd. On the four previous occasions, before handing his car over to the garage, Abid had always been required to read and sign a contractual document which contained the following statement in bold red type:

'Bust Ltd accepts no responsibility for any consequential loss or injury sustained as a result of any work carried out by the company, whether as a result of negligence or otherwise.'

On the most recent occasion, due to the fact that the garage was very busy when he arrived, Abid was not asked to sign the usual document. He was, however, given a receipt for the car, which he accepted without reading. Bust Ltd's usual business terms were printed on the back of the receipt, including the statement above.

On driving the car home after its service, Abid was severely injured when the car suddenly burst into flames. It subsequently emerged that the fire had been the result of the negligent work by one of Bust Ltd's mechanics. Bust Ltd has accepted that its mechanic was negligent but denies any liability for Abid's injuries, relying on the exclusion clause above.

Advise Abid:

4. whether the exclusion clause was incorporated into his contract with Bust Ltd;

5. As to the possible impact of the Unfair Contract Terms Act 1977 regarding any claim Abid might make against Bust Ltd in relation to his injuries.