Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 their cars 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 for any damage or loss incurred, howsoever caused, when the vehicle is in our custody." At the exit to Lotus Bhd's garage there is a small notice stating, "All vehicles are accepted only on the terms as set out on the receipt given." Ritzy Rides Bhd's driver did not see this notice. The following day, John who was the Lotus Bhd's mechanic who had serviced the car, test drove it around 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: a) the effectiveness of the exclusion clauses on the receipt and the small notice in excluding Lotus Bhd's liability; b) whether the exclusion clause on the back of the receipt would be construed against Lotus Bhd based on the contra proferentum rule; and c) whether Ritzy Rides Bhd attempt to claim against Lotus Bhd for the damage to their car likely to be successful

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Law Express English Legal System

Authors: Emily Finch, Stefan Fafinski

8th Edition

1292295457, 978-1292295459

More Books

Students also viewed these Law questions

Question

2. To store it and

Answered: 1 week ago