First Principles of Business Law

11.2. The Fitness Centre

Lillian Holger, aged 25, goes to the Hollyoak Fitness Centre in Sydney and tells the manager, Paul Greer, that she wants to try out the facilities. Paul tells Lillian that for $20, she can become a member for a day. He shows her a membership card that has the words 'Day Member' printed on it and explains that the card will give her access to all the Centre's facilities. Lillian says OK and Paul asks her to sign what he says is a 'Day Membership Agreement'. Lillian signs the document without reading it, pays the $20 fee and is given a Day Member card. She goes to the changing rooms, gets into her exercise outfit, and leaves her other clothes and her gold wristwatch in a locker which she locks carefully using the key provided. She takes the key with her to the exercise room.

When Lillian returns to the changing room an hour later, her wristwatch has disappeared from the locker. There is no apparent damage to the locker, so someone must have used a duplicate key. Lillian complains to Paul about the lack of security but Paul says that the Centre takes no responsibility for the loss of valuable items left in lockers. He says this is a condition of membership. The Day Membership Agreement that Lillian signed does not mention any such thing, but it states that members are bound by 'additional conditions' on the back of membership cards. On the back of Lillian's card it says: "The Hollyoak Fitness Centre is not responsible in any way for the loss of, or damage to, any valuables or personal items left in lockers".