Photo Production v. Securicor Transport Ltd. - Lord Wilberforce, Lord Diplock, Lord Salmon, Lord Keith of Kinkel and Lord Scarman - H.L. - Feb. 14, 1980

Contract - Fundamental breach - Effect on exception clause

This appeal arose out of the destruction by fire of the respondent’s factory. The parties had entered into a contract by which the appellants were to provide a security service at the factory. An employee of the respondents, while making a night patrol, deliberately lit a small fire which resulted in the destruction of the factory. The appellants were sued on the ground that they were responsible for the acts of their employee. The respondents pleaded an exception clause in the contract which provided inter alia that: