Philosophy 2080 Study Guide - Forum Selection Clause, Class Action, Canadian Pacific Air Lines
9 Feb 2013
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Securecor a security company, an employee [of the photo production company] burned down the factory (warehouse) on purpose. Exclusion clause says they are not responsible for anything that happens, unless they didn"t properly screen their employees (which they did). Employee wilfully burned down the place, no negligence. Doctrine of fundamental breach: courts are reluctant to enforce exclusion clauses because they are fundamentally unfair. If the breaching party is so severe in their actions, and it denies the innocent party any benefit, the contract fails. Clear language of the contract is important. Doctrine of contra proferentum: doctrine or rule of interpretation that all we have to use. That"s the rule we should apply if there are any ambiguity in the contract, it must be resolved against the interest of the author. If there isn"t ambiguity, must abide the contract. On appeal, the court of appeal reversed the decision.
