MOOT PROPOSITION

Star Wash Pvt. Ltd., a private limited company based in New Delhi, obtained a franchise from
the iconic worldwide car wash company A1A Car Wash Ltd., headquartered in Albuquerque,
New Mexico, US, to use its business model and brand name for a period of 10 years in India.
After opening a chain of establishments in the NCR area, Star Wash Pvt. Ltd. entered into an
agency agreement with WashNGo Services Pvt. Ltd., a private limited company based in
Ahmedabad, whereby WashNGo Services Pvt. Ltd. was appointed as the agent of Star Wash Pvt.
Ltd. for the purpose of setting up and operating the car washing business of Star Wash Pvt. Ltd.
in the state of Gujarat. WashNGo Services Pvt. Ltd. opened a facility in Ahmedabad and
Vadodara each where it used the name of A1A car wash as the agent of Star Wash Pvt. Ltd.

Reid Taylor, a businessman based in Ahmedabad, strongly believed that to impress his
prospective clients and business associates, he must always present an image of wealth, class and
taste. So, for the purpose of shock and awe, he bought an Aston Martin V12 Vanquish, which he
drove to all his business meetings. He had a very important meeting scheduled for 21st October,
2018, with a Japanese client, Mr. Yamamoto, who was famous for his obsession with punctuality
and fast cars. Reid Taylor hoped to sign a deal with Mr. Yamamoto’s company which would
generate Rs. 25, 00, 000 for his business. Before departing for Jaipur, on 17th October, 2018, he
had given instructions to his driver, Basant, to have his car washed and gleaming in preparation
of this meeting. Reid Taylor was to arrive at Ahmedabad airport at 12:00 p.m. on 21 st October,
2018 and was to be picked up and taken straight away to Riverfront ,the venue of the meeting,
which was due to start at 1:00 p.m.

Reid had told his driver to ensure that the car looked in absolute mint condition and advised him
to get the car washed preferably at Reid’s regular wash service.

The opening of an A1A car wash in Ahmedabad had created quite the buzz. Basant really wanted
to impress Reid by doing a good job and took the car to the new A1A car wash on 20 th October,
2018. While, at the car wash Basant was convinced by the employees of WashNGo Services
Pvt. Ltd. to accept a new kind of wax polish which had come to the market. It was an
experimental polish which had created quite a stir with its promise of being superior to
traditional wax polish. Basant was informed that this wax polish had no yet come into
widespread use, so it was difficult to say if it would live up to the hype around it. Basant ordered
the premium wash as he knew Reid would want nothing but the best for his car, along with the
new wax polish. He paid Rs 5000 to the cashier and received a receipt/ticket he had to show the
car wash professional.

The receipt given to Basant had the following words stamped on the back, “The car wash shall
not be liable for any accident or damage to the car, arising from the wash, beyond making a
refund of Rs 1000.”

Basant collected the car from the car wash at 10:30 a.m. on 21st October, 2014 and drove to the
airport to pick up Reid. On the way he thought he detected an unpleasant odour emanating from
the car but did not think much of it. Upon Reid’s arrival at the airport, while Reid was being
escorted by Basant back to his car which had been parked in the open, both Reid and Basant
realized, to their disbelief, that the expensive chrome paint on the car seemed to be dissolving
and a very foul odour was emanating from the car. In a matter of minutes, the car began looking
very shabby and it was virtually impossible to recognize the hitherto impressive paint work on
the car.

Reid knew he could not be driven in this car to the meeting and had to hail an ordinary taxi to go
to the meeting. Because of the delay at the airport and the slow taxi he arrived 15 minutes late to
the venue, where he found Mr. Yamamoto upset with the delay. Mr. Yamamoto’s mood was
further worsened when he realized he would not get a chance to view the Ashton Martin for
himself. He stiffly informed Reid of his decision to not go ahead with the deal and immediately
left. Reid further spent an additional Rs. 1,50,000 on re-painting his car as the custom paint had
to be imported.

Reid decided to sue Star Wash Pvt. Ltd. for breach of contract and claimed damages for the loss
caused to him. The case was filed before the Ahmedabad District Court in the court of Justice
Insaaf Taraju. The following issues were framed:-

1. Whether the present suit before the District Court is maintainable?

2. Whether Star Wash Pvt. Ltd. owes any contractual obligation towards Reid Taylor?
3. Whether the clause limiting the liability of Star Wash Pvt. Ltd. to Rs. 1000 is good in
law?
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