Greenhill Producers (Pty) Ltd v Benjamin 1960 (4) SA 188 (EC)

Greenhill Producers (Pty) Ltd v Benjamin 1960 (4) SA 188 (EC)

Issue: Whether a clause in a contract that excludes the liability of one party for breach of contract is valid and enforceable.

Facts:

The plaintiff, Greenhill Producers, entered into a contract with the defendant, Benjamin, for the purchase of a quantity of potatoes. The contract included a clause that excluded Greenhill Producers' liability for any breach of contract.

Greenhill Producers failed to deliver the potatoes, and Benjamin claimed damages for the breach of contract. Greenhill Producers argued that its liability was excluded by the clause in the contract.

Held:

The court held that the clause in the contract was invalid and unenforceable. The court reasoned that the clause was contrary to public policy because it allowed Greenhill Producers to escape liability for its own negligence.

Reasons:

• The court found that the clause in the contract was contrary to public policy.
• The court reasoned that the clause was intended to allow Greenhill Producers to escape liability for its own negligence.
• The court also found that the clause was unfair and unreasonable.
• The court reasoned that the clause was not negotiated between the parties and that it was hidden in the fine print.

Key Facts:

• The plaintiff and defendant entered into a contract for the purchase of a quantity of potatoes.
• The contract included a clause that excluded the plaintiff's liability for any breach of contract.
• The plaintiff failed to deliver the potatoes, and the defendant claimed damages for the breach of contract.
• The plaintiff argued that its liability was excluded by the clause in the contract.
• The court held that the clause in the contract was invalid and unenforceable.

Conclusion:

The court's decision in Greenhill Producers (Pty) Ltd v Benjamin 1960 (4) SA 188 (EC) is a significant case in South African law. The court's decision clarified the law of exemption clauses and made it clear that such clauses will not be upheld if they are contrary to public policy.