Parker v South Eastern Railway [1877]

Court: Court of Appeal

Facts: Mr. Parker left a bag in the cloakroom of Charing Cross railway station operated by South Eastern Railway Company. After paying two pence, he received a ticket marked "see back." The back of the ticket included an exclusion clause that exempted the railway from liability for items worth £10 or more. Mr. Parker did not read the clause and thought the ticket was merely a receipt. When his bag, valued at over £10, was lost, he sued the railway company.

Issue: Whether the exclusion clause on the back of the ticket was incorporated into the contract, and if so, whether Mr. Parker was bound by it despite not reading it.

Held: The Court of Appeal held that the case should be retried to determine if reasonable notice of the exclusion clause had been provided. The primary issue was whether South Eastern Railway Company had given Mr. Parker reasonable notice of the clause.

Key Judicial Statements - Mellish LJ: Emphasized that the test for incorporating a term by notice is whether the company had given reasonable notice. The railway company must ensure that the notice provided is sufficient to reasonably inform the customer of the conditions. The fact that Mr. Parker did not read the terms does not exempt the railway company from the obligation to provide reasonable notice. If the company had adequately informed the public about the terms, Mr. Parker’s ignorance would not invalidate the clause.

💡 Leveluplaw: Highlights the principle that reasonable notice is required for exclusion clauses to be binding, regardless of whether the customer reads the terms.