Question

In: Accounting

Tim agreed to dry clean Ema’s new Gucci suit. Emma was to pay $30 for Tim’s...

Tim agreed to dry clean Ema’s new Gucci suit. Emma was to pay $30 for Tim’s dry cleaning services. Tim runs a private and very small dry cleaning business. Tims’s customers are limited to her friends and close families. Tim’s business is very successful. Tim’s motto in life is “less stress and more happiness” Tim has no interest in expanding business. When Emma dropped her suit she received a note which included Tim’s details, business address etc. Some other details were written on the note e.g. details of suit (color, size, brand etc.) date of collection of suit and the deposit paid. At the back of the invoice there was a clause in very small letters “leave your clothes at your own risk and I will not bear any liability for loss or damage.” Ema collected her suit from Tim’s place the next afternoon. The suit was nicely packed in a plastic. When Ema took out the suit at home she noticed a large scorch mark at the back of the suit.

i. Was there a valid contract?

ii. Is the contract discharged?

iii. What are the remedies?

iv. Is the contract invalidated?

Solutions

Expert Solution

(i) No The contract is not valid, It Can be voiadable ate option of the Ema. out of several conditions one must be that both the parties known to the offer and acceptence in same manner. in this case the receipt does not contain the warning line in front of the receipt and further there is no indication on front of the receipt that there is any warning or disclouser are written in back of the receipt. so it will be the hidden condition for Ema, and may be if She knows about the condition then she may refuses to accept the service of TIM.

(II) No The Contract is not Discharged from Tim Side as he is not returning the cloth in desired form.

(III) Ema Can Claim the Cost of the suit if such damages is not repairable or can claim the damages repair expenses.

(iV) Since the decision to accept the service may changed if the condition is disclosed in front of the receipt but now it is hidden then contract is invalidated.


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