Introduction
Joe (“J”) is attempting to sue Dazzle Dry Cleaners (“D”) for compensation for the loss occurred due carelessness of D. D will defend itself likely by proving exclusion clause as a part of the terms of its contract with J. In order to advice J it necessary to determine whether the clause has a contractual effect. Secondly it is necessary to determine the terms of the contract and analyse if creation of such clause protects the party relying on it from the consequence of breach. Finally if it’s rendered ineffective by any statue which make D liable for damage, should be discussed.
Contractual Effects of the Contract
In this case main question that arises is whether the exclusion clause is part of terms of contract. Exemption clause can be part of the contract if the plaintiff “J” signs a document having contractual effect with an exclusion clause in it, it will automatically become the part of the contract .Though this is not case here as there is no formal written contract between “J” and “D”.
Exclusion clause may also be contained in and unsigned documents such as a ticket or a notice. Even here “J” gets a ticket from “D” for the cloths given for dry cleaning and receives a ticket. But exclusion clause will only exist if that ticket is such that a reasonable person would assume to contain contractual terms and not mere a receipt . Reasonable notice of the clause must given . Exclusion clause should also be put to the notice of the other party before or at the time of getting in the contract .
Question arising out of above arguments is whether:
a) Ticket is an unsigned document assumed to contain contractual terms of a contract.
OR
b) Has “D” done enough to put the clause in reasonable notice of “J” and was the clause known to “J” while getting into the contract.
Similar incident happened in the in the case of Thornton v Shoe Lane Parking Ltd . The case stress on the point taking reasonable steps to put the clause in notice and also
Bibliography: • Terry and Giugni, Business and Law, 4th ed., 2008, Para 12.18, page 315. • http://www.lawhandbook.sa.gov.au/ch08s02s07.php • http://www.lawteacher.net/Exclusion%20Clauses%20Lecture.php • http://www.lawteacher.net/Exclusion%20Clauses%20Cases.php • http://www.kevinboone.com/lawglos_ExclusionClause.html • Cases and Acts mentioned in footnotes.