Topics: Contract, Contractual term, Sale of Goods Act 1979 Pages: 3 (1063 words) Published: February 3, 2013
Contract Formation
Before determining the validity of the exemption clause, the first issue to be raised is when the contract was formed between Frank and Packer Line. A contract is an agreement entered into by two or more parties, keeping within the terms of the contractual agreement. For the contract to be enforceable, there must have an offer made, which indicates willingness by the offeror to be.......(cite a case that illustrate this), an unqualified acceptance (citation), ........In Baltic Shipping Co V Dillon, Dillon had made an offer by booking a cruise through Jayes Travel Service, where the offer was formalised by the payment of the deposit and when Jayes Travel Service issued the ‘statement of account’. Reasonable time was open for acceptance by CTC Cruises on behalf of Baltic Shipping Co. Acceptance was completed when Dillon had paid the balance payment and the tickets were issued. The similarity between Baltic Shipping Co V Dillon and Frank's case was that it involves the payment and issuing of ticket. By basing on the facts of Dillon’s case, the contract between the two parties was formed when the balance payment was paid by Frank’s receptionist in exchange for the ticket issued by Packer Line. Validity of Exemption Clause

The next issue is whether the exemption clause is valid.
Exemption clauses seek to limit one’s liability under the contract by clearly mentioning that they will not be responsible for certain liabilities. The clause could be valid as long as it is properly included in the contract. When Frank’s receptionist paid the payment in exchange for the ticket, the envelope containing the ticket was written “PLEASE READ CONDITIONS OF THE ENCLOSED CONTRACT”. The ticket itself contained the exemption clause. It could be said that the exemption clause could have been valid as notice of the clause was given at the time of the contract. However, the issue here is whether reasonable steps had been taken to draw to the attention of Frank of...
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