Scenario 2: Laptop Disaster

A few months later, all is resolved between Tom and Jerry, and their jointly owned business is doing extremely well. Their profits have skyrocketed. They have recently purchased 200 brand-new special edition laptops for their employees as a thank you. Each of these laptops are top of the line, and worth over $3,000.00. Due to the value of these special edition laptops, Tom and Jerry decide they have to be very careful with choosing who be responsible for their delivery from the manufacturer. Tom and Jerry decide to meet with StarShipping Pty Ltd, a well-known delivery company.

In their meeting, StarShipping Pty Ltd is eager to please and provides their best driver for the task, Sunny. Tom and Jerry are extremely happy with the proposed cost and professionalism of both StarShipping and the chosen driver Sunny. Later that afternoon, the contracts have been finalised. Tom and Jerry are too busy talking with StarShipping and Sunny, that they forgot to read the Terms & Conditions. Tom and Jerry sign the contract, right underneath an apparent exclusion clause.

Clause 5.6 stated: StarShipping does not take any responsibility for any loss or damage to any goods carried by their employees, pursuant to this contract however such loss or damage may arise or be caused whether by negligence or otherwise.

Later that week, the 200 laptops are ready for delivery and Sunny collects them from the manufacturer, loads them into the truck and departs for TJ & Partners' office. Along the way, Sunny receives a phone call from his friend asking him to pay him a visit, as his brand new Mustang has arrived from the US. Excited to see his friend's new car, Sunny decides to make a quick detour. On his way to this friend's house, the traffic increases. Sunny having been on the phone and not paying attention, negligently leaves his truck sitting across a trainline. Sunny becomes increasingly concerned when he sees the boom gates lower, with the signals flashing. Sunny looks to his left and there is a freight train speeding towards him. With only enough time to get himself to safety, Sunny runs across the tracks. The freight train slams into Sunny's truck and all the laptops are destroyed.

When StarShipping notify Tom and Jerry of the unfortunate events, they are furious.

Tom bursts out "You are reckless and negligent! You will be held liable for this! You will hear from our lawyers!"

Feeling quite confident about themselves, StarShipping simply reply: "You signed the contract, we are not liable! You agreed to our Terms & Conditions!"

Tom and Jerry decide to consult their lawyers to see whether they are bound by what they have signed, and whether the exclusion clause is applicable.

Task: You are Tom and Jerry's lawyer. Using principles of Contract Law advise Tom and Jerry whether StarShipping are liable to pay for the destroyed laptops. In providing your advice, please rely upon case law.