QUESTION THREE (CONTRACT LAW):

Derrek has taken some annual leave from work and decides to do some DIY refurbishment work at home. He decides to hire some ladders and planks from a local equipment hiring business, ABL Pty Ltd, to enable him to paint the interior of his home. When he collects the hired goods, he is asked to sign a hiring agreement. Derrek asks the employee of the hiring firm why he has to sign an agreement, to which the employee replies, "It is just for marketing purposes". Derrek does not read the form, but signs it as he never seems to understand the extensive legal language anyway.

Whilst Derrek is using the equipment, one of the planks he hired collapsed due to being defective and Derrek is seriously injured.

Derrek tries to recover compensation for his injuries from the hiring firm who have turned his attention to the following term found on the agreement he signed:

"The hirer accepts no responsibility for personal injuries suffered by persons using our equipment during the period of hire including where there is breach of contract by our company, employees, agents or contractors. "

Please answer the following questions using the IRAC format. Please refer to relevant principles under contract law as well as appropriate case-law in your answer.

(a)Advise Derrek on whether the term in the agreement he signed is legally valid and hence, whether he is likely to be successful in claiming for his injuries.

(b)Assume for purposes of this part that the term above was found on a receipt Derrek was given after he paid to hire the equipment but not on the agreement he was made to sign. Would your answer be different?