 XYZ Ltd entered into a contract with ABC Ltd for the supply of resin, whk h XYZ Ltd needed in order to produce pipe for a large pipeline. ABC Ltd made the business decision to supply defectjve resin to XYZ Ltd and drafted the contract between the parties to protect itself from liability in relation to that defect as follows:
X'fZ Ltd assumes all responsibility and liabilit y fur loss or damage arising from the use of the resin supplied under this contract herein and acknowledges that ABC Ltd's liabilit y is limited to the selling price of t he resin.
Another clause stated:
X'fZ Lt d t o notify ABC Lt d of any objection to the resin supplied within 30 days. Failure to provide ~uch notice constitutes unqualified acceptance and waiver of all claims.
ABC Ltd knew that the resin was dangerous and would allow natural gas to escape. In fact, this is exactly what happened. There was an explosion in the pipeline for whlch XYZ Ltd supplied pipe and whlch XYZ Ltd fixed at great cost. When it asked ABC Ltd for help, ABC Ltd refused to take any responsibility, pointing to the exclusion clauses. Due to negative publicity surrounding the gas pipe leaks, XYZ Ltd lost both its reputation and financial viability. Assumjng that the supply of defective resin was a breach of contract, do you thlnk ABC Ltd will be able to rely on the exclusion clauses above? If so, on what basis?36
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