You work at a company called CuddleTech (CT). CT operates a website where users can play 3-D interactive video games online. When users create an account for the CT website, they are required to agree to a standard form contract. You have been assigned the task of reviewing and rewriting this contract. Under the contract, users are required to disclose any physical disabilities or medical conditions that might cause them to react negatively in CT’s online 3-D game environment. CT is concerned that users with certain medical conditions may be prone to negative reactions in the 3-D game environment. This obligation to disclose any disabilities applies continuously so long as users continue to use their accounts to play games at the CT website. You have been asked to ensure that CT’s standard form contract contains a term that gives CT the right to immediately terminate the account of any user who does not comply with this disclosure obligation. You have been presented with the following two options for this clause. Which option would you recommend CT use in its contracts and why?

Option 1:

If at any time the user intentionally or unintentionally, or fraudulently, or negligently, or otherwise fails in any direct or indirect manner to comply with their obligation to disclose any and all physical disabilities that might in any direct or indirect way cause them to react negatively in CT’s 3-D gaming environment, then CT shall have the right and be entitled to declare that this contract is null, void, and unenforceable immediately or at any time, at its sole discretion.

Option 2:

CT is concerned about your health. Throughout the duration of your account with CT, you must disclose to CT any physical disability or medical condition that might cause you to react negatively in CT’s 3-D game environment. If at any time you do not disclose such a condition or disability to CT, CT may immediately terminate your account.