Professional Documents
Culture Documents
Vincent operates a business, painting murals and other art works in o ffices
and other commercial buildings. Over the past two years he has bought paint
twice a month from Claude, a local paint manufacturer.
Recently, Vincent bought 100 cans of paint from Claude, which Vincent then
put in his storeroom together with some valuable works of art. Over the next
week, Vincent used 10 cans of the paint on one of his jobs, but because of
negligent manufacture by Claude, the paint was of poor quality and cased
damage to the client’s building. Vincent had to pay $20, 000 compensation to
the client.
Later, 40 of the other cans exploded in the storeroom and damaged Vincent’s
valuable works of art. This happened because Pablo, one of Claude’s
employees, had a personal grievance against Vincent and deliberately put the
wrong substance into those 40 cans. The damage to the works of art is worth
$40, 000.
“Claude is not liable for any loss or damage caused by the paint, regardless of
how much loss or damage may be caused.”
The same words also appear on a small sign on the counter of Claude’s sales
area.
Claude is refusing to pay compensation, saying he is protected by the words
on the receipt and the sign.
Vincent has never read either the notice on the receipt or the sign.
(a) He is bound by the words on the receipt or the sign? (16 marks)
(b) Would it have made any difference to your answer if Vincent had
read the sign at the time of buying the paint and had asked what it
meant and been told by Claude’s salesman that it excluded
Claude for liability only if the paint fumes affected people with an
allergy to those fumes? (4 marks)
LEGT 1710 BUSINESS AND THE LAW
SESSION 1, 2011
4) If you need further information to help with your answer, say what that
information is and why it is significant, in your view.