Legal advice for Equipment Hire Limited.

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SID Number: 0365570/1                Module Code: LWB1029

To: Equipment Hire Limited

From: XXX Legal Advisors

Subject: Legal Advice

Date: 02/06/04


Equipment Hire Limited (EHL) is a business whose service is to hire out plant and equipment to both business and individuals. Sunil, a window cleaner by trade, regularly hires ladders from EHL. Sunil hired a ladder from the company to paint the outside of his house upon which he paid £50 deposit and was issued with a receipt stating an exclusion cause:

‘Conditions of Hire: EHL accepts no responsibility for any loss or    damage suffered as a result of use of the equipment. Hirers use the equipment at their own risk’

Unfortunately due to a defect, Sunil fell of the ladder and landed on his personal radio, which was irreparably damaged, and suffered a broken leg.

EHL seek legal advice as to their liability for damages, if any, concerning Sunil’s broken leg and the damaged stereo.

  1. Introduction

To establish damages owing in the incident concerning the client, EHL, and their customer Sunil, the following report aims to advise EHL and distinguish differences in liability of damages regarding Sunil as a consumer and as a business. In this case EHL are attempting to exclude liability for damages with their exclusion cause.

This report explores the legal rules that control contracts for The Supply of Goods and Services Act 1982, The Unfair Contract Terms Act 1977 and The Unfair Terms in Consumer Contracts Regulations 1999.

  1. The Contract Subject to the Supply of Goods and Services Act 1982

The contract between EHL and Sunil for the hire of the ladder is ‘subject to Part 1 of the Supply of Goods and Services Act 1982’ (Keenan, 2002). The contract is made and discussed in part 1 section 1 of the act which covers the transfers of goods from supplier to customer and also part 2 section 2 which covers the supply of services; in this case it is EHL hiring the ladder to Sunil.  

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Sunil’s statutory rights are covered in part 1 of SGSA 1982. Section 2 of part 1 assumes that EHL as the supplier has the right to supply and in section 3 ‘it is implied that transfer of the goods is by description’. Which means Sunil may have agreed to hire the ladder on the basis of its description alone and therefore never had the chance to inspect the ladder.

Also, section 5(1) states ‘This section applies where, under a contract for the transfer of goods, the transferor transfers or agrees to transfer the property in the goods by ...

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