ExpertACCA · Question 48 · The law of obligations
Scenario: 'AeroDyne Drone Logistics Ltd' negotiates with 'MediSupply Co' to provide vaccine delivery routes. AeroDyne emails: "We offer the Northern route for £50,000 per year." MediSupply replies: "Would you accept payment in 12 monthly installments?" AeroDyne ignores this reply and sells the route to a competitor. MediSupply claims AeroDyne breached the contract. Separately, AeroDyne's standard terms state: "AeroDyne accepts no liability for personal injury caused by drone malfunction, even if due to our negligence."
Question: Under the Unfair Contract Terms Act (UCTA) 1977, what is the legal validity of AeroDyne's exclusion clause regarding personal injury?
Scenario: 'AeroDyne Drone Logistics Ltd' negotiates with 'MediSupply Co' to provide vaccine delivery routes. AeroDyne emails: "We offer the Northern route for £50,000 per year." MediSupply replies: "Would you accept payment in 12 monthly installments?" AeroDyne ignores this reply and sells the route to a competitor. MediSupply claims AeroDyne breached the contract. Separately, AeroDyne's standard terms state: "AeroDyne accepts no liability for personal injury caused by drone malfunction, even if due to our negligence."
Question: Under the Unfair Contract Terms Act (UCTA) 1977, what is the legal validity of AeroDyne's exclusion clause regarding personal injury?
Answer options:
It is valid if it passes the 'reasonableness' test.
It is completely void and unenforceable.
It is valid because it is a business-to-business (B2B) contract.
It is valid if it was clearly brought to the attention of the other party.
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