The contract that governed the dealings between the parties in this case included a stipulation that schenker could not be held liable for losses suffered by fujitsu in those cases where fujitsu requested schenker to transport high value goods, where schenker was not made aware of the fact that the goods were of high value, and where the goods were then subsequently lost or damaged for any reason. identify whether this stipulation is a term or a condition.
Question: The contract that governed the dealings between the parties in this case included a stipulation that schenker could not be held liable for losses suffered by fujitsu in those cases where fujitsu requested schenker to transport high value goods, where schenker was not made aware of the fact that the goods were of high value, and where the goods were then subsequently lost or damaged for any reason. identify whether this stipulation is a term or a condition.
The stipulation in the contract between Fujitsu and Schenker is a condition. A condition is a fundamental term of a contract, and its breach gives the innocent party the right to terminate the contract and claim damages.
In this case, the stipulation is a condition because it limits Schenker's liability for losses suffered by Fujitsu. If Fujitsu requests Schenker to transport high value goods without making Schenker aware of their value, and the goods are subsequently lost or damaged, Schenker will not be liable for the losses. This is a significant limitation of Schenker's liability, and it is therefore a fundamental term of the contract.
If Schenker were to breach the condition by failing to transport the high value goods with due care, Fujitsu would be entitled to terminate the contract and claim damages. Fujitsu would also be able to sue Schenker for negligence.
Here is an example of how the condition would work:
- Fujitsu requests Schenker to transport a high value painting without making Schenker aware of its value.
- The painting is lost or damaged during transportation.
- Fujitsu terminates the contract and sues Schenker for damages.
Under the condition, Schenker would not be liable for the losses suffered by Fujitsu. This is because Fujitsu did not inform Schenker that the painting was of high value.
However, Fujitsu could still sue Schenker for negligence. Negligence is a legal doctrine that holds that people have a duty to act reasonably and to avoid causing harm to others. If Schenker failed to transport the painting with due care, Fujitsu could argue that Schenker was negligent and therefore liable for the losses.
Whether or not Schenker was negligent would be a question of fact for the court to decide. The court would consider all of the circumstances of the case, including the type of goods being transported, the value of the goods, and the measures that Schenker took to protect the goods.
Overall, the stipulation in the contract between Fujitsu and Schenker is a condition. This means that it is a fundamental term of the contract, and its breach gives Fujitsu the right to terminate the contract and claim damages.
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