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Dada Pty Ltd (Dada) is an Australian chain of supermarkets and grocery stores and hires Lorenzo to distribute products to its different stores in Sydney.

Dada Pty Ltd (Dada) is an Australian chain of supermarkets and grocery stores and hires Lorenzo to distribute products to its different stores in Sydney. Lorenzo does not sign any contract with Dada and the whole negotiations are conducted over the phone. As part of the arrangement, when the products are delivered to a particular store, an employee of the store signs a form provided by Lorenzo. The form contains a disclaimer. The following disclaimer is written in the form that Lorenzo provided to the store: We do not accept any responsibility for the loss of or damage to any item caused by any acts, defaults, or negligence of the carrier or otherwise. Lorenzo delivers the products on a number of occasions and on each time, after the delivery, an employee signs a form but never reads the form or is even aware that it contains a disclaimer. On one occasion, the products are damaged on the way to delivery due to negligence of Lorenzo. Dada sues Lorenzo for breach of contract. Lorenzo relies on the disclaimer. Dada also reaches an agreement with Fantasy Advertising Pty Ltd (Fantasy) to provide for its branding and marketing strategies for five years. Dada presents its standard form contract to Fantasy for signing. One of the terms of the standard form contract allows Dada to the right to terminate the contract at any time, provided it gives one month's notice. Before signing the contract, Fantasy expresses concern about this term as it understands that the contract is for five years. The employee representing Dada assures Fantasy that the contract is for five years and although the term to terminate the contract at any time with one month's notice is included in the standard form contract, it is rarely used by Dada. Fantasy then signs the contract. However, six months later, Dada considers to enforce this term against Fantasy on the ground of Fantasy's inability to generate effective strategies for attracting a diverse range of customer base Answer the following two questions with full explanation: (a) Advise Dada whether it can recover the value of the damaged products from Lorenzo. (15 Marks) (b) Advise Fantasy whether it is bound by the term in the contract. (10 Marks)

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