Masi went to Phong’s whitegoods repair shop in downtown Melbourne for the first time
and left his microwave to be repaired. The shop was robbed and Phong had no insurance.
When Masi returned to pick up his microwave on the date in which it was supposed to be
repaired, Phong refused to compensate Masi for his loss. Phong draws Masi’s attention to
a small sign in a dimly lit corner of the shop which says “No liability accepted” and to an
exclusion clause printed in small letters on the back of the receipt for the microwave. It
states in old fashioned legal terms, which Phong had copied from an old law book, that he
will not be liable for the loss or damage of goods left for repair under any circumstances.
Discuss whether Masi would succeed in gaining compensation for breach of contract.
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