Question 2 - Exclusion Clauses

Right Price Realty, a real estate business in metropolitan Adelaide is owned and operated by Martina. Wanting to take advantage of the recent property boom and associated property price increases, Franca decides to engage the services of Right Price to sell her property with a 900 square metre site area.Franca meets with Martina, where Franca promotes the attractiveness of her property to prospective buyers given its large 900 square metre area. Martina explains requirements and costs for online advertising and marketing and recommends a sale price of $900,000 based on a $1000 per square metre rate. Franca agrees and signs the standard form sales agreement for the property sale. The following day, Franca drops off the keys to her property at the Right Price office. The office attendant hands Franca a piece of paper. Franca is running late on her way to work and without reading the piece of paper, places it in her bag.

Over the next 3 months, market response to Franca's property is very poor. Franca reviews the online advertising and discovers that the property site area has been incorrectly stated at 600 square metres. Franca immediately rings Martina expressing her disappointment and frustration with the error. Martina states that she knows nothing of the error as her sales assistant is responsible for inputting property data for online advertising and marketing.Martina reminds Franca of the piece of paper that she had been given when she dropped off the keys and says to Franca 'Besides, Right Price is not liable, our terms and conditions clearly state that we are not responsible for any errors'.Franca retrieves the sheet of paper from her bag and reads the words 'Terms and Conditions' at the top of the page followed by the following:

'Right Price Realty accepts no responsibility for any inaccuracies or omissions regardless of the cause.'

The property boom is now over and Franca's property is not sold.

Does the piece of paper with the words 'Terms and Conditions' and the clause prevent Franca from suing Right Price Realty for compensation?

Using relevant legal principles of contract law, discuss whether:

(a) the contract between Franca and Right Price Realty includes an exclusion clause; and

(b) assuming the exclusion clause was part of the contract, would it also cover the incident?

(10 Marks)