Exemption clause nullified by linguistic treatment.
The Facts
A five year catering agreement contained the following clause:
“18.6 The contractor hereby acknowledges and agrees that the Company shall have no liability whatsoever in contract, tort (including negligence) or otherwise for any loss of goodwill, business, revenue or profits..”.
The employer party terminated the contract with 20 months of the contract remaining.
The contractor claimed substantial damages.
The interpretation of the exception clause was referred to trial as a preliminary issue.
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