Question
Harry runs a clinic business. In May 2021, negotiations were conducted by Harry with C-Carrier Ltd entirely by telephone, to the delivery new piece of
Harry runs a clinic business. In May 2021, negotiations were conducted by Harry with C-Carrier Ltd entirely by telephone, to the delivery new piece of expensive machinery,
Harry emphasised to the CEO of C-Carrier Ltd that if the machinery was damaged in transit, it would cause delays in completing a job for University B - one of his biggest clients.
Due to the fact that the relevant C-Carrier Ltd truck driver lost control of the truck and hit a tree, the machinery was then damaged in transit.
According to police investigations, the truck driver was intoxicated at the time of the collision and, as a result, had a blood alcohol percentage that was far higher than Victoria's legal limit for fully qualified drivers.
When the (damaged) machinery was delivered to Harry, one of his employees signed a form that contained an exclusion clause. The exemption clause excluded liability for damage "caused by any acts or defaults of the carrier or otherwise". Harry's employee did not read the form.
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Harry spent over $25,000 to repair the machine which also meant that Harry was one month late in completing the printing job for University B. As a result of this delay, Harry was informally advised that University B will be looking for a new printing company.
Harry estimates that this will result in a loss of over $500,000. Harry was unable to replace University B with new clients.
For the purposes of this question, please assume that the exclusion clause above does not apply.
Harry needs to determine whether he has a right to terminate the contract with C-Carrier Ltd, and whether or not that is the case. He also needs to determine whether he is entitled to damages.
(A) Does Harry have the right to terminate the contract for breach in performance, according
to the law of contract?
(B) What damages can Harry claim from C-Carrier Ltd as a result of its breach of contract, according to the law of contract?
Do not discuss the Australian Consumer Law. Please refer to any relevant legal cases and/or legislation to support your arguments, and ensure that you fully explain your answer.
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