When Mr George Sold His House, He Rented an Apartment and and Was

question 18

Multiple Choice

When Mr. George sold his house, he rented an apartment and was forced to store some furniture until he bought another house. He attended the downtown office of Security Warehousing Ltd. and entered into a bailment contract that promised to safeguard the furniture. Four months later, his things were stolen from the warehouse, and when he asked for compensation for his loss, the company admitted it was in breach of contract, but said it was exempt from liability because of an exemption clause posted on the wall of the storage area where George had taken the furniture. The sign read "Not liable for loss due to fire or water." On these facts, which of the following would be his least successful argument to nullify the exemption clause?

• A) He failed to receive reasonable notice of the clause at the time of contract.
• B) There has been a fundamental breach of the contract.
• C) The Sale of Goods Act voids such an exemption clause.
• D) On the strict construction of the clause, it doesn't cover the cause of the loss.
• E) Such terms cannot be unilaterally imposed.

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Definitions:

First Amendment

The part of the United States Constitution that protects freedoms of speech, religion, press, assembly, and petition.

Constitution

The system of fundamental principles according to which a nation, state, corporation, or the like, is governed.

Search Without A Warrant

A law enforcement action to search a person or property without possessing a court-issued warrant, permissible only under certain conditions.

Law Enforcement

Governmental agencies and officers responsible for the prevention, detection, and investigation of crimes, and the apprehension of criminals.