Plaintiff (bailor) contracted X (bailee) to clean her mink coat.
X sub contracted the work, with Plaintiff’s consent, to Defendant (sub bailee) who, by carelessness, let the coat be stolen. There were exemption clauses in the contract between X and Defendant but not between Plaintiff and X.
CA held that on the facts of this case the exemption clauses offered no defence (they did not cover this type of good), but as a general rule, where Plaintiff consents to sub bailment, they are impliedly consenting to the bailee making a contract under the “usual terms of the trade” and Plaintiff will be bound by them.
Thus if the exemption clauses had covered this type of scenario, Defendant could have relied on them against Plaintiff (per lord Denning).
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Contract Law | Privity Notes (43 pages) |