Sarah works for a company that has offered a promotion if she is willing to relocate. Sarah accepts the position and puts her house on the market right away. She sells her house the first day that the realtor holds an open house. The buyer agrees to pay cash for the full purchase price of the house. Sarah is thrilled, except that it means that she will have to put her furniture in storage until she finds another house in her new city. She enters into a written contract with Safe Storage, Inc. The agreement includes a clause excusing Safe Storage, Inc. from any liability for loss or damage, even if the loss or damage results from Safe Storage's negligent acts. Because of Self Storage's negligence, a fire destroys the warehouse and all of its contents, including Sarah's household goods and furniture. Sarah claims that Safe Storage, Inc. is liable for the full value of the contents, which is approximately $10,000. Is Sarah correct

Question

Business

Bryan Franklin

27 May, 19:14

Sarah works for a company that has offered a promotion if she is willing to relocate. Sarah accepts the position and puts her house on the market right away. She sells her house the first day that the realtor holds an open house. The buyer agrees to pay cash for the full purchase price of the house. Sarah is thrilled, except that it means that she will have to put her furniture in storage until she finds another house in her new city. She enters into a written contract with Safe Storage, Inc. The agreement includes a clause excusing Safe Storage, Inc. from any liability for loss or damage, even if the loss or damage results from Safe Storage's negligent acts. Because of Self Storage's negligence, a fire destroys the warehouse and all of its contents, including Sarah's household goods and furniture. Sarah claims that Safe Storage, Inc. is liable for the full value of the contents, which is approximately $10,000. Is Sarah correct

+4

Answers (1)

Know the Answer?

Felix Morales · Answer 1

Answer: Yes, because storage warehouses are strictly liable for loss or damage, regardless of fault and regardless of exculpatory clauses.

Explanation:

An exculpatory clause is a contract between two parties that relieves one party of liability if damages are caused during the execution of the contract. The party issuing the exculpatory clause is the one looking to be relieved of any potential liability. exculpatory clauses can also be rejected when they are unreasonable.

In this scenerio Sarah is right because storage warehouse are usually liable for loss or damages of goods regardless of a pre agreed exculpatory clause.