Greenjet Contractual Liability Dispute

Summary

GreenJet is disputing a liability cap with TechGenius Ltd due to a software malfunction causing significant financial loss. The Unfair Contract Terms Act 1977 may deem the cap unenforceable if unreasonable. GreenJet could argue misrepresentation or negligence if TechGenius misrepresented the softwares capabilities or was negligent. Case law on incorporation by notice and the reasonableness of terms will be crucial in determining the enforceability of the liability limitation.

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GreenJet, a recent entrant in the airline in****stry, prides itself on its eco-friendly practices and customer-centric approach. GreenJet opted for an automated system developed by TechGenius Ltd to manage a growing number of customer claims efficiently. The software developed by TechGenius Ltd provided automatic compensation for customers whose flight was delayed for more than The Chief Legal Officer was off work sick those days when the contract was negotiated, and the review of TechGenius’ standard terms was mistakenly assigned to one of the trainee lawyers who had just started with the company, who missed their contract law classes on unfair terms ****ring their studies. The contract was signed off by the legal team without noticing a clause that stated:
To address whether GreenJet can claim full compensation from TechGenius Ltd, there are some considerations:
- Unfair Contract Terms Act *: This Act may deem the liability cap of £*,* unfair and unenforceable if it causes a significant imbalance in the parties' rights and obligations.
- Misrepresentation: If TechGenius Ltd misrepresented the software's capabilities, GreenJet could claim damages for misrepresentation.
Has GreenJet attempted to negotiate with TechGenius regarding this issue?
'Liability on the part of TechGenius Ltd, whether arising from breach of contract, negligence, or any other legal grounds, shall not exceed £*,* in connection with any damages related to this agreement’ Soon thereafter, the software malfunctioned. As a result, passengers delayed for less than * hours were erroneously compensated, while those eligible for compensation did not receive it, leading to a loss of £*,* for GreenJet. GreenJet turned to you for legal advice regarding their situation. They would like to know whether they can claim full compensation from TechGenius. ]
In this situation, GreenJet may have some legal grounds to challenge the liability cap ****e to:
- Unfair Contract Terms: Under the Unfair Contract Terms Act *, a term that limits liability must be reasonable.
- Negligence: If negligence can be proven, this may override the liability cap.
Was the software fault ****e to negligence on TechGenius Ltd's part?
By reference to applicable case-law, consider whether the liability limitation term became part of the contract.
- Unfair Contract Terms Act *: The Act may render the liability cap of £*,* unenforceable if it is deemed unreasonable.
- Incorporation of Terms: For a term to be enforceable, it must be properly incorporated into the contract.
- Misrepresentation: If TechGenius Ltd misrepresented the software’s capabilities, GreenJet could claim damages.
Has GreenJet reviewed the specific terms and conditions mentioned in the Memoran****m of Terms?
By reference to applicable case-law, consider whether the liability limitation term became part of the contract.
To consider whether the liability limitation term became part of the contract, you can refer to the following:
- Incorporation by Notice: Terms must be brought to the other party's attention before or at the time the contract is made (e.g., Parker v South Eastern Railway Co).
- Unfair Contract Terms Act *: Limits liability clauses must be reasonable. Courts will look at the bargaining power of the parties and whether the term was clear and prominent.
- Negligence and Misrepresentation: If the software fault was ****e to negligence or misrepresentation by TechGenius, this might override the limitation clause.
Has GreenJet provided any evidence of negligence or misrepresentation on TechGenius Ltd's part?