Olley v Marlborough Court Hotel Ltd

Ratio Decidendi

Facts

Mr and Mrs Olley booked in and paid for a room at the Marlborough Court Hotel at the reception desk. A notice in the bedroom stated that the proprietors would not be liable for articles lost or stolen unless handed to the management for safe keeping. While the Olleys were out, and through the negligence of hotel staff who allowed a stranger to take the room key, Mrs Olley's furs were stolen from the room. She sued the hotel for the loss.

Judgment Summary

The Court of Appeal held that the hotel could not rely on the exclusion notice, because the contract had already been concluded at the reception desk when the booking was made and paid for — before the guests ever went up to the bedroom and could have seen the notice. A term is incorporated into a contract only if it is brought to the other party's attention before or at the time the contract is made; a notice first seen afterwards comes too late. Since the exclusion clause formed no part of the contract, the hotel remained liable for the loss of the furs caused by the negligence of its staff. Denning LJ and Singleton LJ treated the timing of incorporation as decisive.

Key Quotes

Subsequent Treatment