Multiple choice

Fact: M delivered one new saree to a laundry for washing. On the back of the printed receipt it was stated that the customer would be entitled to recover only 15% of the market price of the article in case of loss. The saree was lost owing to the negligence of the laundry. Issue: Is M entitled to claim the loss?

  1. M is entitled to claim the loss and the laundry shop is liable

  2. M is not entitled because the condition was printed on the back of the receipt.

  3. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Exemption clauses limiting liability for negligence are often struck down. The laundry's printed clause limiting liability to 15% is an unreasonable exclusion clause. Courts refuse to enforce terms that allow negligence without adequate recourse. M is entitled to full compensation despite the printed condition.

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