Scott Corporation (SC) is planning to import hand sanitizers into Trinidad and Tobago because of the...

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Operations Management

Scott Corporation (SC) is planning to import hand sanitizersinto Trinidad and Tobago because of the increase in demand due tothe Bird Flu influencer.

SC hired Trailblazer Corporation (TB) to transport the shipmentof hand sanitizers from the Port of Pineapple on Monday1st October 2018 to SC’s warehouse in the Bamboo at acost of TT$10,000. The shipment of hand sanitizers has to be storedat a particular temperature, to prevent it from been damaged duringtransportation, for which TB was duly informed.

At a meeting on 20th September 2018 between SC and TBto discuss the transportation arrangement, TB’s CEO Mr. Right,presented SC’s CEO Mr. Wrong with a form containing an agreement totransport, which outlined the date and cost of delivery as statedabove. The form also stated inter alia ”please read conditions ofcontract prior to signing” Mr Wrong signed the form, but failed toread the entire contents of the signed document. The conditionsincluded an exclusion clause exempting TB from all losses howevercaused during the transportation of the sanitizers.

The shipment of hand sanitizers was subsequently damaged duringtransportation, because it was stored at the wrong temperature. SCon inspection the shipment thereafter, saw the damaged sanitizersand has indicated that they will seek damages via a legal actionagainst TB. However, TB is seeking to rely on the exclusion clausementioned above.

SC Corporation is arguing that they are not bound by the clause,because when their CEO signed the document, he was of the view thathe was simply signing an agreement for the transport of theshipment of hand sanitizers. They also argued that if such clauseis so critical to TB in terms of the exclusion of liability, merelystating ”please read condition of contract prior to signing” wasnot sufficient; indeed, some express notice of the exclusion clauseshould have given bearing in mind that the parties never contractedpreviously.

TB is holding strong to their view that they are protected bythe exclusion clause and as such SC cannot sue them. Advise SCCorporation.

Answer & Explanation Solved by verified expert
4.1 Ratings (825 Votes)
The exclusion clause should be a part of contract and be known to both the parties before the contract begins By signing the contract Mr Wrong is assumed to be in agreement of    See Answer
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