Policy & Compliance
Know your BIFA Standard Trading Conditions 2021 – Clause 24
This month BIFAlink looks at Clause 24 of the Standard Trading Conditions which provides Members with a defence against liability for all types of loss or damage
M any contracts and agreements have a force majeure clause that essentially frees either one party or both parties from liability when there is an extraordinary event or circumstance beyond the control of the parties. As an example, this could be a war, a crime, a riot or a strike. You will, no doubt, have also heard the legal term ‘Act of God’ describing an event such as flooding, an earthquake or similar natural occurrence. In practice, most force majeure clauses do not excuse a party’s non-performance entirely, but only suspend it for the duration of the force majeure. Clause 24 of the BIFA STC gives a BIFA Member defences under these circumstances. Clause 24: The Company shall be relieved of liability for any loss or damage if and to the extent that such loss or damage is caused by: (A) Strike, lock-out, stoppage or restraint of labour, the consequences of which the Company is unable to avoid by
“ It is important to note that Clause 24 can be overridden by compulsory legislation such as that concerning the international conventions
the exercise of reasonable diligence, or (B) Any cause or event which the Company is unable to avoid
part of its sub-contractor, and that the BIFA Member does not act as an insurer. It is important to note that Clause 24 can be overridden by compulsory legislation such as that concerning the international conventions referred to in the comments on Clause 2(B). Such international conventions may be more specific with regard to the BIFA member’s relief of liability, either by the imposition of duties or the granting of defences. Limiting acceptance of liability to wilful negligence, or only to when the goods are in the BIFA Member’s actual custody, are not attempted in Clause 24 because such limitations would be ineffective under the Unfair Contract Terms Act 1977.
and the consequences whereof the Company is unable to prevent by the exercise of reasonable diligence.
Comment on Clause 24(A) - (B) These are important clauses that set out the BIFA Member’s general defences. They supplement the indemnities in Clause 20. Clause 24 refers to all loss or damage and not merely loss of, or damage to, goods. It also indicates that the BIFA Member does not accept liability without fault on its part, or on the part of its agent, or on the
Which clause? Do you know your Clause 8 from your Clause 18? Sign-up to join the webinar on 10 April for the lowdown on the BIFA Standard Trading Conditions. Member Policy & Compliance Director Robert Windsor will guide Members through the most important clauses of the BIFA Standard Trading Conditions (STC) during this webinar. He will examine clauses relevant to both the BIFA Member and its customer, the warranties and responsibilities
Without incorporation and acceptance, the BIFA STC cannot provide protection to the BIFA Member, leaving the company open to a range of issues and potential costs. BIFA Members can register to attend this exclusive event by visiting: https://bifa.org/event/bifa-member- event-bifa-stc-webinar/ • By the way, Clause 8 details the Member’s right to exercise a lien, and Clause 18 requires that the customer shall indemnify the Member against loss or damage arising from the handling of certain goods.
applicable to each party and the limits of liability. However, the most important fact to remember is to ensure that the STC are properly incorporated into each contract.
April 2024 | 19
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