Exemption Clause - Who is Liable. Commercial and Consumer Law



Commercial & Consumer Law

Last month, A Ltd supplied five thousand crates of frozen beef burgers to B Ltd at a cost of £500,000. The contract specified that the burgers were to be ‘Grade A’ and of ‘Scottish origin’. On delivery at the Port of Liverpool, B Ltd discovered that the burgers were made from Grade A horse meat, sourced from Romania. As a consequence, B Ltd spent £750,000 on finding replacement Scottish reared, beef meat, in order to complete a contract with C Ltd, a UK supplier of ‘Scottish’ burgers to British supermarkets. The horsemeat burgers have been sold to a local dog food manufacturer for £100,000.

In response to B Ltd’s claim for a refund and damages, A Ltd is insisting that it is not liable for any such claims on the basis that (i) there is no breach of contract and (ii) A Ltd can rely on the following exemption clause contained in the contract between A Ltd and B Ltd: “A Ltd accepts no liability for breach of any term of the contract, express or implied.”

Advise B Ltd as to its legal position.

Word limit 2000 words

Deadline Week 9: Monday 20 March 2017

Format Typed

Warning Plagiarised, unattributed or non-independent work will be zero-marked

Word limit: 2000 words (footnotes which are confined to case citations or references ARE NOT part of the word limit; footnotes containing text to avoid the word limit will be disregarded by the marker)*

* Footnotes are to be used for stating references only, ie to CITE a reference in support of a point, comment, etc contained in the main text. These are NOT part of the word limit and will be marked. Any use of footnotes to avoid the word limit by including within the text of the footnote argument or comment which should appear in the main body of the work will be disregarded by the marker. A bibliography is required but is excluded from the word limit.

Assessment criteria

By the end of the coursework, students should have been able to demonstrate:

• An understanding of implied terms, remedies and exemption clauses in a sale of goods contract;

• An ability to produce written material in a relevant, concise manner, using accepted legal principles, supported by proper legal references

Marking grid

Work is marked as a whole, taking into account the assessment and grading criteria, in accordance with the following:


Clear introduction of issues

Logical sequencing of points


Accurate identification of issues


Evidence of research

Application of legal principles

Use of authority



Clarity of language

Spelling, grammar

Presentation of references

Learning outcomes

On completion of this module students should be able to:

1. 1. Demonstrate an in-depth knowledge and understanding of commercial and consumer law principles involved in the distribution of goods and services within the economy and how they impact on businesses and consumers.

2. 2. Identify, analyse and critically evaluate complex commercial and consumer issues.

3. 3. Apply and evaluate appropriate commercial and consumer legal principles and theories to hypothetical situations.

4. 4. Anticipate areas where principles may be unclear and pose appropriate legal and practical solutions.

5. 5. Assume the personal responsibility to undertake research from a variety of reliable sources.

6. 6. Articulate, develop and sustain sophisticated legal arguments clearly and coherently in writing.

Færdigheder: Kontrakter, Engelsk(UK), Jura, Juridisk Forskning, Juridisk tekstforfatning

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