In January 2002, Sauri, a dealer in second hand equipment, took delivery of a consignment of electric typewriters and calculating machine. Ij view of shortage space at his iwn premises, Sauri decided that the consignment should be stored with Stow & Co. who had a warehouse for rent. The contract for the storage which Sauri signed, did not read, consisted a standard form supplied by Stow & Co. A duplicate copy of the form was given to Sauri and terms of the contract required him to produce the form before the goods could be release. A few days after depositing the goods Sauri met Kishi, a rival dealer, and boasted of his recent purchase and the growth if the business which has caused him to take up storage space with Stow & Co. The following day Kishi, being jealous of Sauri's business, sent his assistant , Danpara, to the Warehouse in order to fraudulently persuade the clerk in charge to release some of Sauri's goods. Danpara, who was not in possession of the necessary document, told the clerk that he had been sent by Sauri to collect four crates of equipment. Danpara was allowed to take the crates. Kishi then sold the goods to a dealer in Bukuru. Sauri, being unaware of Kishi's involvement in the matter is intending to sue Stow & Co. for breach of contract. Stow & Co. are refusing to accept liability on the ground that the standard form signed by Sauri contains the following cause:
"The company is not liable for the loss, mis-delivery, or damage to any articles where the value is ij excess of N500 unless at the time of deposit the true value and nature of the goods is declared by the depositor and an extra charge paid" Sauri had made jo such declaration. Discuss the legal issues raised in the above situation.
"The company is not liable for the loss, mis-delivery, or damage to any articles where the value is ij excess of N500 unless at the time of deposit the true value and nature of the goods is declared by the depositor and an extra charge paid" Sauri had made jo such declaration. Discuss the legal issues raised in the above situation.