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SCENARIO 1: AeroLogistics Ltd, a cross-border freight forwarder, emails a quote to ship machinery for Zenith Manufacturing, stating 'Subject to AeroLogistics Standard Terms'. Zenith replies with a purchase order stating 'Order placed subject to Zenith Purchasing Terms'. AeroLogistics receives the order, does not object, and ships the machinery.
Under contract law, whose terms govern the contract?
ACCA · Question 47 · Corporate and Business Law
SCENARIO 1: AeroLogistics Ltd, a cross-border freight forwarder, emails a quote to ship machinery for Zenith Manufacturing, stating 'Subject to AeroLogistics Standard Terms'. Zenith replies with a purchase order stating 'Order placed subject to Zenith Purchasing Terms'. AeroLogistics receives the order, does not object, and ships the machinery.
Assume AeroLogistics' terms did apply. One term states: 'AeroLogistics accepts no liability whatsoever for damage to goods caused by our own negligence.' Under the Unfair Contract Terms Act (UCTA) 1977, is this clause valid in a business-to-business contract?
SCENARIO 1: AeroLogistics Ltd, a cross-border freight forwarder, emails a quote to ship machinery for Zenith Manufacturing, stating 'Subject to AeroLogistics Standard Terms'. Zenith replies with a purchase order stating 'Order placed subject to Zenith Purchasing Terms'. AeroLogistics receives the order, does not object, and ships the machinery.
Assume AeroLogistics' terms did apply. One term states: 'AeroLogistics accepts no liability whatsoever for damage to goods caused by our own negligence.' Under the Unfair Contract Terms Act (UCTA) 1977, is this clause valid in a business-to-business contract?
Answer options:
It is absolutely void and can never be enforced.
It is automatically valid because it is a business-to-business contract.
It is valid only if it satisfies the requirement of reasonableness.
It is valid only if Zenith signed the document in wet ink.
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