Contract law question.

A company has breached an express term of a contract. The company agreed to service a vehicle by 4:00pm if it was dropped off by 9:00 am. It was dropped off at 9 am, however, when an employee went to get the vehicle he was told that it would not be ready. As a result, Company B has lost £600.

The company is attempting to limit liability by including a clause stating that failure to take reasonable care and skill in performing the contract will be limited to £60 per day. My question is: is a delay of service tantamout to a failure to take reasonable care and skill in performance of a contract?

Reply 1

Forum User

19

Original post by Dee_Pars

My question is: is a delay of service tantamout to a failure to take reasonable care and skill in performance of a contract?

Hmm, what did C actually promise to do?

1) C promised to service the car by 4:00 pm. In that case, C hasn't performed his contractual obligation so he is, prima facie, liable for breach. The fact that SOGSA implies terms about using reasonable skill and care to carry out the service, and carrying out the service in a reasonable time is irrelevant because there is an express term that he will do it by 4:00 p.m.

2) C promised to take reasonable skill and care to try and have it serviced by 4:00 pm. In that case, whether C has performed his obligation or not does not depend on whether there is any general rule that 'delay' = 'failure to take reasonable skill and care'. Some delays can occur no matter how careful C is, some delays are caused by C being careless. It would be a question of fact which was the case here.

Reply 2

Dee_Pars

OP

Original post by Forum User

Hmm, what did C actually promise to do?

1) C promised to service the car by 4:00 pm. In that case, C hasn't performed his contractual obligation so he is, prima facie, liable for breach. The fact that SOGSA implies terms about using reasonable skill and care to carry out the service, and carrying out the service in a reasonable time is irrelevant because there is an express term that he will do it by 4:00 p.m.

2) C promised to take reasonable skill and care to try and have it serviced by 4:00 pm. In that case, whether C has performed his obligation or not does not depend on whether there is any general rule that 'delay' = 'failure to take reasonable skill and care'. Some delays can occur no matter how careful C is, some delays are caused by C being careless. It would be a question of fact which was the case here.

Hi,

C promised to service the car by 4:00 pm. However, he broke that express term as the car was not ready until the following day. There are two clauses (an exemption clause which relates to liablity for delay which applies) and the other is a limitation clause saying that C liability will be limited to £60.00 per/day for failure to exercise reasonable care and skill in performing the contract.

I'm at loggerheads as to whether or not by delaying the service they failed to take reasonable care and skill in performing the contract (as per the limitation clause).

Thanks for any information you can provide :smile:

Contract law question.

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