Mr Anwar, a taxi driver, signed an agreement with Tip Top Cabs that provided him with the use of a van-taxi licence in exchange for a monthly licence fee. He also paid a "dispatch system fee" for the use of Tip Top's dispatch services. Under the agreement, the monthly dispatch system fee was set at $1175. Other operators, who drove regular taxis, paid the same dispatch fee.

A short while later, Tip Top advised only its van operators that their dispatch fees would be increased by $500 per month. Anwar objected to the increase as being contrary to his understanding of the meaning of "dispatch system fee" in the agreement. Anwar argued that a fee that applied only to van-cabs did not fit within the term "dispatch fee." All cabs access the dispatch service and therefore the fee should be the same for all cab drivers.

Tip Top claims that this is not the case, and that the term allows for different fees for different types of cabs as deemed appropriate by Tip Top.

Do you think the phrase "dispatch system fee" is ambiguous? From a business perspective, how might Tip Top have altered the wording in its contract to minimize the risk of litigation, assuming it knew it might one day wish to increase its fees?