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On arriving at Vancouver airport, Mr. Clemson, a frequent traveller, rented a car from Tilford Car Rentals Ltd., as he had done many times before.

On arriving at Vancouver airport, Mr. Clemson, a frequent traveller, rented a car from Tilford Car Rentals Ltd., as he had done many times before. The clerk asked him whether he wanted additional collision insurance coverage, and as usual Mr.Clemson said, "Yes." The clerk added a fee of $10 a day for this coverage. She then handed the contract to Clemson, and he signed it in her presence. She was aware he did not read the terms of the contract before signing it.

Clemson's signature appeared immediately below a printed statement that read, "I, the undersigned, have read and received a copy of above and reverse side of this contract." On the back of the contract, in small type and so faint on Mr. Clemson's copy as to be hardly legible, there was a series of conditions, one of which read:

Notwithstanding the payment of an additional fee for limitation of liability for collision damage to the rented vehicle, customer shall be fully liable for all collision damage if vehicle is used, operated or driven off highways serviced by federal, provincial or municipal governments and for all damages to vehicle by striking overhead objects.

The clerk placed Clemson's copy of the contract in an envelope and gave him the envelope and car keys. He got in the car, placed the contract in the glove compartment, and drove to a nearby shopping plaza to buy a gift. While driving in the plaza parking lot, he collided with another car, causing damage of $2500 to his rented car. The car rental agency claimed he was personally liable for repairs under the terms of their contract. Clemson refused to pay for the car repairs, and Tilford Car Rentals Ltd. sued him for breach of contract.

Outline the nature of the arguments available to Tilford Car Rentals Ltd. and of the defences available to Clemson. Express an opinion, with reasons, about whether the action is likely to succeed.

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