A, an accountant, undertakes to prepare B's accounts. The contract contains a term excluding any liability of A for the consequences arising from any inaccuracy whatsoever in A's performance of the contract. A may not rely on the exemption clause which is inherently unfair. A, a warehouse operator, enters into a contract with B for the surveillance of its premises. The contract contains a term limiting B's liability.
Thefts occur in the terminal resulting in loss exceeding the amount of the limitation.
If a party is not entitled to rely on an exemption clause, its liability is unaffected and the aggrieved party may obtain full compensation for the non-performance. Contrary to the rule laid down with respect to agreed payment for non-performance in Art. 7.4.13, the court has no power to modify the exemption clause.