Scenario:
Instructor, taxiing aircraft to apron, suffers brake failure.
In spite of his best efforts he is unable to avoid a collision with a parked aircraft owned by a third party.
The student is acting as PUT and the instructor, as P1, is in command of the aircraft.
There is no negligence on the part of the instructor.
According the Terms and Conditions stated above:
'The Student hereby acknowledges that it assumes all risks, both known and unknown, associated with or related to the operation of aircraft.'
and,
'[The Company] shall not be liable for any liability arising out of the Course, save where such liability arises from the neglect or wilful act or default of [The Company], or its employees, agents or sub-contractors …'
The instructor is an employee and was not guilty of any 'neglect or wilful act or default …'
The student is apparently liable for all losses arising out of the incident.