Free · SQE1 Question of the Day
Today's SQE1 question
One worked single-best-answer question, free, every day. Answer it, then reveal the correct option and the cited rationale.
Keira's Bakery Ltd enters a written contract with Leon's Logistics Ltd for daily bread deliveries. A clause in the contract states: 'Neither party shall be liable to the other for any indirect or consequential loss arising out of or in connection with this contract, howsoever caused.' Due to Leon's Logistics' negligent failure to deliver, Keira's loses a catering contract worth £40,000 (a loss of profit Keira's regards as direct lost business). Keira's also claims £500 for wasted ingredient costs. Leon's Logistics relies on the exclusion clause. Which of the following BEST states how a court would approach the clause in relation to the £40,000 claim?