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Ritzy Rides Bhd runs a car rental business. Their cars are sent to Lotus Bhd who run a chain of garages throughout the Klang Valley,

Ritzy Rides Bhd runs a car rental business. Their cars are sent to Lotus Bhd who run a chain of garages throughout the Klang Valley, for servicing. Last month Ritzy Rides Bhd sent one of theircars for routine service to Lotus Bhd's garage. Lotus Bhd gave Ritzy Rides Bhd's driver a receipt.The receipt confirmed that Lotus Bhd had accepted the car for servicing and had set out the date on which Ritzy Rides Bhd could get back their car.

The driver, without reading the receipt, put it into his pocket. The driver later handed the receipt over to his manager, who also without reading it, filed it away. The following words appeared on the back of the receipt:"Whilst we will take all care possible, we take no responsibility forany damage or loss incurred, howsoever caused, when the vehicle is in our custody."Atthe exit to Lotus Bhd's garage there is a small notice stating,"All vehicles are accepted only onthe terms as set out on the receiptgiven."Ritzy Rides Bhd'sdriver did not see this notice.

The following day, John who was the Lotus Bhd's mechanic who had serviced the car, test drove itaround the block. As John was speeding, he did not notice a pothole in the road and drove the car into it, causing significant damage to it.

Advise Ritzy Rides Bhd as to:

  1. a)the effectiveness of the exclusion clauses on the receipt and the small notice in excluding Lotus Bhd's liability; explain with example
  2. b)whether the exclusion clause on the back of the receipt would be construed against Lotus Bhd based on the contra proferentum rule; explain with example and
  3. c)whether Ritzy Rides Bhd attempt to claim against Lotus Bhd for the damage to their car likely to be successful. explain with example

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