Applicant delivered item to corporation for storage.
Contract specified corporation’s liability limited to $40.
Respondents, employees of corporation, damaged item.
Applicant sued respondents – could respondents rely on limitation clause
in their employer’s contract with app?
Supreme Court of Canada held they could.
For employees to obtain benefit of their employer’s limitation clause
there must be:
1. Express / implied stipulation
by contracting parties that benefit of clause will be shared by employees.
2. Employees must have been acting
in course of their employment when damage occurred
3. Employees must have been
performing the very services provided for in contract.