On 4 October 2021, Wame entered into a contract for driving lessons with
Tumelo. Wame paid P1000.00 for 10 lessons at the price of P100.00 each in
advance. When Wame paid for the lessons, there was a sign displayed behind
the counter which stated Tumelo’s standard terms of business. These included
the following clauses:-
1. Tumelo is under no liability to his client for any accident which might,
through reasonable care by the client, have been avoided.
2. No refunds shall be provided for cancelled lessons.
On 10 October 2021, during Wame’s second lesson, as she was driving
Tumelo’s car under Tumelo’s supervision, she was directed by Tumelo onto a
busy main road. Wame panicked at the heavy traffic, and crashed the car into a
traffic light, despite Tumelo’s best efforts to stop her. The damage to the car
was slight, but Wame was considerably shaken up by the incident, and has
refused to take any further lessons with Tumelo. Wame now suffers from
recurrent nightmares since the accident.
On 1 November 2021, Wame cancelled her lessons and requested for a refund
of P800.00. Tumelo denies that the crash was his fault, and demands to know
when Wame will be taking her remaining lessons. Tumelo has refused to refund
any of the money.
Advise the Parties.
Answers
Tumelo's actions amount to Fraud. Wame can recover her money from Tamelo.
Explanation:
In contract act we learn that it is the case of fraud if the party entering in a contract with intention to trick the other party by doing any of the following acts:- (lets name the parties A and B to make it easy )
case 1) if party A hides a important fact relating to the contract from party B, with the intention to trick them, it will be a case of Fraud. ( however, if party A don't hide the fact intentionally and party B fails to notice the fact by their carelessness, and party A remains silent about it, it will not be called fraud.)
case 2) if party A makes a promise to party B which they don't plan to complete, it will be a case of Fraud.
case 3) if party A does any other act with the intention to deceive party B, which can be called Fraud.
if a seller entered a contract by doing Fraud, the buyer can recover the price or damages.
In this case, Tumelo has kept the sign that displays important facts about the contract behind the counter, there was no way for Wame to see the sigh because it was not in front of her. this shows that Tumelo has intentionally hide the sign in order to deceive Wame. this will be case 1 from above. so this will be considered Fraud from Tumelo, so Wame can recover his money.