Mercurius Motors v Lopez

Mr Paul Lopez delivered a Jeep Cherokee, which he leased from Daimler Chrysler Services South Africa (Pty) Ltd, to Mercurius Motors’ East Rand Mall service depot for servicing, minor repairs and installation of spotlights. The vehicle was under warranty and the keys were handed to Mercurius. During the night the depot was allegedly broken into and the Jeep was stolen. It was the only vehicle missing, and its keys could not be accounted for, despite an established procedure that all keys should be locked away. Mercurius denied liability, relying on exemption clauses contained in documents signed by Mr Lopez. Mr Lopez sued Mercurius in the Johannesburg High Court on the basis of a contract of deposit, claiming the agreed value of the vehicle, R245 000.

The appeal was dismissed with costs. The High Court order directing Mercurius Motors to pay Mr Lopez R245 000 plus interest and costs was confirmed.

The case is important for South African contract and delict law as it clarifies the treatment of exemption clauses in standard-form contracts, particularly in contracts of deposit. It affirms that exemption clauses which negate the essence of a contract must be clearly and prominently brought to the attention of the contracting party, and it reinforces the duties and standard of care owed by a depository for reward.