Caroline took her expensive cashmere coat to the local dry cleaners. She gave the coat to the attendant behind the counter. The attendant handed her a ticket with a number (#007) on the front. On the back of the ticket in 9pt font were the words "No liability will be accepted for lost or stolen clothing whatsoever." Caroline did not read the back of the ticket but jokingly said "My name is Bond, Caroline Bond". When Caroline collected the coat two days later, she was upset to find a burn mark on the coat. She complained to the shop attendant who pointed to the back of the ticket and stated that the dry cleaner is not responsible for any damage to clothing.

Issue: Is the exclusion clause valid?

Rule: For the exclusion clause to be valid, it must be inserted (included) into the contract, and the wording used in the exclusion clause must expressly exclude liability. The exclusion clause is expressly included in the written contract.

Will the clause protect the cleaners? Explain by providing an IRAC answer for the following two sub-issues:

1. Is the exemption clause part of the contract?

1. Assuming the exemption clause is part of the contract, will the wording be effective in protecting the dry cleaner from liability or can Caroline still win the case?

Write your IRAC answers below: