Quora Answer: Can Stores Legally Put Up a Sign Saying, “If You Break It, You Pay for It!”?

The following is my answer to a Quora question: “Can stores legally put up a sign saying, ‘If you break it, you pay for it!’?  Why do they not have insurance?”

Strictly from a Singapore perspective, such a notice may not be legally enforceable.  It really depends on a lot of circumstances, since that would determine the statute it comes under.  Was it deliberate, or an accident?  Was the item placed precariously, in which case, it would be negligence on the part of the shop?  Was the item supposed to be robust, but broke upon handling; in which case, it is defective?  Was there a sign telling people not to touch the item, in which case a violation makes the customer liable?

Depending on the nature and value of the item, the shop may sue the customer. However, they cannot force or coerce payment.  The threat of violence makes it extortion, which is a serious offence.  They also cannot detain the customer, since that is illegal confinement, another serious offence.  The only circumstance where they can temporarily detain a person is to call the police, and hand them over to them.  They cannot demand the NRIC, or any form of documentation, and keep it, since that is also against the law.

In the case of most retail items on consignment, there is a form of manufacturer’s warranty, and the item may be exchanged by the retailer for another.  Items of high value are often insured against loss and damage.