Olley v Marlborough Court Hotel [1949]

Court: Court of Appeal

Facts: Mrs Olley had her fur coat stolen from her room at Marlborough Court Hotel. The hotel had an exclusion clause on a notice behind the door, stating that they would not be responsible for lost items unless handed to the manageress. Mrs Olley argued that the clause was not part of the contract.

Issue: Can an exclusion clause become a term of the contract if it is communicated after the contract has been formed?

Held: The court found that the exclusion clause was not part of the contract since it was communicated after the contract was formed at the reception desk. The hotel could not rely on the clause to exempt itself from liability for negligence.

Key Judicial Statement: Denning LJ emphasized that representations made after the formation of a contract do not automatically become terms of that contract. Clear terms and intention to be legally bound must be present at the time of contract formation.

💡Leveluplaw: To incorporate an exclusion clause into a contract, it must be communicated and agreed upon at the time of contract formation. Notices or terms presented after the fact are generally insufficient to alter the contractual obligations.