Monroe sold computers.On the purchase of a new IBM computer the buyer signed the written contract that contained the following clause: "The seller is not liable for any breach of condition or warranty express or implied in this contract." The buyer was a businessman who intended to use the machine in his business for a while and then resell it.The machine was used properly but didn't operate well,and within one week it would not work at all.Monroe refused to take back the machine or to refund any money by relying on the exemption clause.Which of the following would be the buyer's best argument for avoiding the effect of the exemption clause in this case?
A) Such clauses are prohibited under contract law and are therefore void.
B) The buyer had no notice of the clause; therefore, it is not a term of the contract.
C) On a narrow interpretation of the words used in the exemption clause, they do not cover his complaint.
D) There is a fundamental breach of contract.
E) There is a breach of a non-essential term of the contract.

Question

Quizplus · Accepted Answer

The best argument for the buyer would be that there is a fundamental breach of contract. This means that the seller has failed to perform one of the main obligations under the contract. In this case, the main obligation was to supply a computer that would work properly. By relying on the exemption clause, the seller is attempting to avoid liability for this fundamental breach. However, the buyer could argue that the exemption clause is not effective in this situation because it is attempting to exclude liability for a fundamental breach of contract, which is not allowed under the law.

Monroe Sold Computers