S supplied night patrolman for P. He lit a fire and burnt down building. S had limitation clause saying they would not be liable for acts of employees unless it could have been foreseen
Can the exclusion or limiting clause be invoked?
True construction of the contract is the proper approach – you construe the contract – what does the clause say you must interpret it. (look at the words themselves and the intention of the parties) – even if major breach.
**Court said because of Suisse Atlantique notion of Fundamental Breach no longer law
Look at clause and if it was intended to apply to this breach, apply it and if not, don’t - determine if applies through true construction of the contract.
In the event of a breach, if the breach is important enough, they have a right to treat the contract at an end and sue for damages.
The words are clear – S could rely on the clause