UpliftMovers (UM) is a moving company specialising in the relocation of business

Question

UpliftMovers (UM) is a moving company specialising in the relocation of businesses. Titanic Global Octopus (TGO) employs UM to move its office equipment including furniture and computers to its new premises. To do the job within the tight time frame specified (TGO must have its new office installed and ready for business by 9 o’clock on Monday morning) UM agrees to work over the weekend.

At 3 am on Monday morning while making the final delivery Monty, UM’s driver, falls asleep at the wheel and crashes the delivery truck. Desks and computers fall onto the road and are damaged.

When TGO sees the damage to its desks and computers it wants to make a claim against UM. But UM points to the contract which TGO has signed that says, “ In the event of any damage by UpliftMovers, or its employees, to any of the client’s (TGO’s) property being moved, from whatsoever cause and howsoever arising, the total amount for which Uplift Movers shall be liable, regardless of the number of items damaged, shall not exceed $1,000.”

TGO estimates that the damage to its property is $30,000. One of the computers was a personal computer owned by Karl. TGO has encouraged its employees to use their own computers in order to save costs. The computer was completely destroyed. A replacement computer will cost Karl $2,500.

In one of the damaged desks was a ring owned by Lennie. He had been storing it in a locked drawer in his office desk for safekeeping before giving it to his partner on their anniversary. The lock was damaged and when Lennie got his desk back on Monday he discovered that someone had stolen the ring valued at $5,000.

REQUIRED:

Advise TGO, Karl and Lennie as to any claims they may have against UM.

Explanation / Answer

Answer:

a) Though TGO's total damage is $30,000, TGO cannot claim more than $ 1000 since it is agreed

upon by the parties in the written contract.

b) Karl cannot ask for replacement of this computer from either UM or any of his employees.

c) Lennie too cannot ask UM or anyone in TGO for replacement of his stolen ring though costs

$ 5,000. It is his badluck that it is lost.

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