George Mitchell v Finney Lock Seeds [1983]

Wrong type of seeds provided – did not grow properly.
Clause in invoice purported to limit liability of
seller in this situation.
Court of Appeal held seed company could not rely on
clause.
But did point out that one factor in seed company’s
favour was that price of cabbage seeds small, whereas damages claimed high.
House of Lords also held seed company could not rely
on clause:
– Terms of contract were not negotiated.
– Breach due to negligence for which seed company
responsible.
– Seed company could insure against crop failure
caused by supplying wrong seeds without materially increasing price of seeds.
– In practice, seed merchants always negotiated
settlements of claims for damages in excess of price of seeds if they thought
claim genuine and justified – fact merchants had not sought to rely on clause
in past showed it would not be reasonable to allow them to rely in this case.