Exclusion Clauses

Question 1

Olley v Marlborough Court Hotel

Answer 1

If a contract was made before a clause was mentioned, the clause is ineffective

Facts: fur coat stolen and victim was shown unmentioned exclusion clause notice on the back of her hotel door AFTER contract was made in hotel reception. Held ineffective notice

Question 2

Knight Machinery (holdings) ltd v Rennie

Answer 2

Term requiring written notice of rejection within 7 days of delivery was too short and unreasonable, when the printing machine took several days alone to install, let alone allowing a trial period of running for defects

Question 3

Houghton v Trafalgar insurance

Answer 3

Contra preferential rule

‘Load’ cannot be construed to cover too many passengers in a car.

Facts: car accident, clause stating ‘D not liable to pay insurance where there is an “excessive load” in the car’ (6 people in 5 seater).

Ambiguous clause is used against those relying on it (insurance company)

Question 4

Director General of Fair Trading v First National Bank

Answer 4

Requirement of ‘good faith’

Supplier should not take advantage of consumers necessity, lack of experience or unfamiliarity with the subject matter of the contract.

Question 5

Chapelton v Barry UDC

Answer 5

A reasonable person would regard a ticket as nothing more than a receipt and would not expect it to contain any contract terms

Facts: deckchair hired and broke, injuring buyer but clause excluding liability in the ticket is not part of a contract