Peter wished to celebrate his silver wedding anniversary bytreating himself and his wife, Mary, to a holiday. His impaired vision meantthat he was unable to drive so he went to the office of Star Limousines Ltd(“Star”), a company that specialises in the hire of luxury cars. Peter enteredinto a contract with Star for the hire of a car together with a driver for aperiod of two weeks at a cost of £3,000. As he was leaving Star’s office, Peterwas handed an envelope containing brochures recommending various hotels. Theenvelope also contained a sheet of paper headed ‘Terms and Conditions of Hire’on which was written, among other things, the following: Clause (i): NeitherStar Limousines Ltd nor its employees or agents shall be liable to acts oromissions that occasion injury to clients or damage to or loss of theirproperty, howsoever caused.

Clause (iv): Any liability of Star Limousines Ltd,its employees or agents is limited to £500. Clause (xi): A person who is not aparty to this contract shall have no right under the Contracts (Rights of ThirdParties) Act 1999 to enforce any terms of this contract. This clause does notaffect any rights or remedies of any person which exists or is availableotherwise than pursuant to that Act. On the third day of Peter and Mary’sholiday the car in which they were travelling left the road and crashed. Thisaccident was caused by the carelessness of Tim, a driver employed by Star. Thecar was rendered immobile.

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Both Peter and Mary decided that they had lostconfidence in Tim’s driving abilities and consequently in Star. They abandonedtheir holiday and returned home the same day.In the accident, Peter suffered a broken collarbone and cutsand bruises. Both Peter and Mary suffered damage to their luggage and clothing.

They were both disappointed that their holiday had ended insuch an unsatisfactory manner. Advise Peter and Mary on any claim they mightbring against Star in breach of contract.


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