Thornton v Shoe Lane Parking Ltd [1970]
Court: Court of Appeal
Facts: Francis Thornton parked his car in a multi-storey car park operated by Shoe Lane Parking Ltd. He received a ticket from an automatic machine, which stated it was subject to conditions displayed on the premises. The conditions, which included an exclusion clause limiting the company's liability for personal injury, were posted on pillars near the paying office. Thornton, unaware of these conditions, suffered an injury and sued the parking company.
Issue: Whether the exclusion clause was incorporated into the contract and, if so, whether the company could rely on it given that it was not made known until after the contract was formed.
Held: The Court of Appeal held that the exclusion clause was not incorporated into the contract. The contract was formed when Thornton inserted money into the machine and received the ticket, not when the exclusion clause was posted. The company failed to provide reasonable notice of the exclusion clause.
Key Judicial Statements:
Lord Denning MR: Emphasized that the contract was concluded when the ticket was issued, making any attempt to incorporate additional terms afterward ineffective. The exclusion clause could not be incorporated after the fact. He highlighted that the automatic machine's offer was made when it was ready to accept payment, and acceptance occurred when Thornton paid. Any conditions on the ticket issued afterward were irrelevant. Even if the machine was treated as a booking clerk, the company needed to provide clear and reasonable notice of the exclusion clause, which was not done.
Megaw LJ and Sir Gordon Willmer: Agreed with the requirement for reasonable notice but differed on whether the contract was formed before or after the notice was given. They concurred that the exclusion clause was ineffective due to insufficient notice.
💡 Leveluplaw: Highlights the principle that for an exclusion clause to be incorporated into a contract formed via an automatic machine, reasonable notice must be provided before the contract is concluded. Subsequent legislation like the Unfair Contract Terms Act 1977 has further limited the enforceability of such clauses in personal injury cases.