COMM 393 Chapter Notes -Fundamental Breach
Document Summary
Contract contained exclusion clause that dockside gave no warranties or conditions of any kind whatsoever on the bayliner. Maloney argued fundamental breach in the contract: repeated stalling, maloney learned of historic deficiencies in bayliner and repairs while it was under warranty. Unconscionable (grossly unfair) nullifies the exclusion clause. The court found that the exclusion clause applied to mr. maloney"s purchase of the vessel. It dealt with used goods and mr. maloney had bought the vessel used. The court then considered whether the exclusion clause was unconscionable. Dockside had knowledge and expertise about vessels while mr. maloney was an. Dockside knew of engine problems and didn"t disclose them. If the exclusion clause is applicable and valid, should the court, nevertheless, refuse to enforce the valid exclusion clause because of the existence of an overriding public policy: unconscionable (grossly unfair) nullifies the exclusion clause. Exclusion clause applies as this relates to used goods.
