Michael's Shop has a standard form contract that includes an exemption clause. What must Michael do to ensure that the use of the exemption clause is accepted by a court as proper?
A) Michael must enter into a collateral agreement with any person regarding the clause.
B) Michael must not use the exemption clause. .
C) Michael must modify the clause.
D) Michael must bring the exemption clause to the attention of any person with whom he seeks to enter into a contract.
E) Michael must notify the court of his use of the exemption clause before he enters into the contract.

Question

Quizplus · Accepted Answer

To ensure that the use of the exemption clause is accepted by a court as proper, Michael must bring the exemption clause to the attention of any person with whom he seeks to enter into a contract. This is known as the doctrine of reasonable notice, where the party seeking to rely on an exemption clause must take reasonable steps to bring it to the other party's attention before the contract is entered into. This can be done through highlighting the clause or making it a separate document to be signed. Collateral agreements are not required, modifying the clause may not be necessary, and notifying the court beforehand is not relevant.

Michael's Shop Has a Standard Form Contract That Includes an Exemption