Topic: Contract law
Film Fun plc is a one woman company operated by Fiona, which distributes films. Fiona wanted Film Fun plc to be able to distribute a film entitled ‘The Bluest Blood’. She visited Goliath plc, to see if Film Fun plc could hire the film from them. On the wall of the offices of Goliath plc is a sign in blue print, on a yellow background stating:
‘Goliath plc is not liable for any loss, however caused, to any of its customers beyond the hire charge of the film hired by the customer’.
‘Customers, who wish to contract on different terms, should discuss this with Goliath plc’.
Fiona has a very unusual form of colour blindness which would have made it impossible for her to read the sign.
Fiona contracted for Film Fun plc, with Goliath plc, for the hire of the film, ‘The Bluest Blood’, and Film Fun plc paid Goliath’s hire charge. Through the negligence of Goliath plc, there was a major delay in Film Fun plc receiving the film.
Due to the delay Film Fun plc has suffered entirely, and readily, foreseeable losses far in excess of the hire charge for the film. However, Film Fun plc would have suffered losses less than the hire charge if it had taken up an offer to hire ‘The Bluest Blood’ from Harry’s Films plc, but it did not do so, for fear of its reputation being damaged as the copies of films supplied by Harry’s Films plc are often of poor quality, with the viewing and sound quality deteriorating during use.
In the past, where it has been negligent, Goliath plc has sometimes settled claims with other customers for sums in excess of the hire charge. Goliath plc’s business is not doing as well now, and in relation to Film Fun plc, it is insisting that its liability is limited to the hire charge.
Advise Film Fun plc.