Facts
Finney Lock Seeds Ltd agreed to supply George Mitchell (Chesterhall) ltd with 30lbs of Dutch winter cabbage seed for £192. An invoice sent with the delivery was considered part of the contract and limited liability to replacing ‘any seeds or plants sold’ if it were defective (clause 1), and excluding all liability for loss or damage or consequential loss or damage from use of the seed (clause 2). 63 acres (250,000 m2) of crops failed, and £61,513 was claimed for loss of production.
The two main issues in the case were, first, whether the limitation clause should be interpreted to cover the seeds actually sold, given that the seeds were wholly defective and did not do a seed's job at all; and second, whether under the Unfair Contract Terms Act 1977, s 2(2) the limitation was reasonable (s 11).
In the House of Lords, Leonard Hoffmann QC and Patrick Twigg made submissions for George Mitchell and Mark Waller QC made submissions for Finney Lock Seeds.
Read more about this topic: George Mitchell (Chesterhall) Ltd V Finney Lock Seeds Ltd
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