"The Capital Hill Council (the council) decides to computerise the system by which it taxes local

businesses. Fred, the town clerk, speaks to a number of local computer specialists, but is most impressed

by Brilliant Sdn Bhd. He receives their terms and conditions by fax. Unfortunately the fax is unreadable.

Nevertheless, Fred signs the reply slip and posts it back. The slip is lost in the post.

The terms and conditions contain the following clauses:

1. This contract contains no terms implied by law.

2. Any losses for which Brilliant Sdn Bhd are liable will be limited to RM25,000.

3. No responsibility will be taken for any injury or damage due to the negligence of Brilliant Sdn Bhd, its

employee or agents.

Simon installs the system on behalf of Brilliant Sdn Bhd. Unfortunately, the software is unable to cope

with the demands of the Council and charges only half the local businesses the relevant tax. This leaves

the Council with a deficit of RM500,000 plus a fine of RM10,000 from central government for

overspending. Fred calls Simon in to fix the computer, but he is unable to solve the problem. In

frustration, Simon hits the computer, which promptly explodes, badly injuring Fred and wrecking the

office, causing damage of RM15,000."

Please advice me on the issues present in this case and what types of rules I should apply to tackle the issues. Such as, which cases I should refer to to solve the issues present.

I'd like some cases for reference for the above mentioned issues and ways to advice the Council.

Thank you.