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ICAEW BL · Chapter 3 · Question 4 of 10

Jonah pays for a one-day pass, which includes use of a locker, at the front desk of a climbing centre. In the changing room he later sees a notice excluding the centre's liability for property lost through staff negligence. His laptop is stolen from a locker because a member of staff carelessly leaves the master key unattended. Can the centre rely on the notice?

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Reveal answer & explanation

Correct answer: C) No, because the notice was not brought to Jonah's attention before the contract was made

Explanation

To be incorporated, an exclusion clause must be brought to the other party's notice before or at the time the contract is made (Olley v Marlborough Court). The contract was made at the front desk, so a notice seen afterwards in the changing room is not part of it. Liability for negligence can sometimes be excluded, so the clause fails because it was not incorporated, not because it covers negligence.

All 10 questions in Chapter 3Contract terms, exclusion clauses and misrepresentation MCQs with answers

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