Case Summary

Olley v Marlborough Court Ltd [1949] 1 KB 532

Contract; contents; attempt to include express terms in notice.

Facts: Mr and Ms Olley arrived at the Marlborough Court hotel. After paying in advance and signing the register, they were shown to their rooms. On the wall of the room was a notice saying: 'The proprietors will not hold themselves responsible for articles lost or stolen unless handed to the office for safe custody'. Owing to the negligence of the maid, who left the bedroom door unlocked, Ms Olley's furs were stolen. Mr Olley sued the hotel to recover the loss. Defending the action, the hotel relied on the notice that excluded liability for such losses.

Issue: Did the notice effectively exclude the hotel proprietors' liability for the loss?

Decision: The statement in the notice had not become a term of the contract.

Reason: The statement in the notice was not brought to the Olleys' attention while the contract was being made. The agreement between the Olleys and the hotel was completed when they paid and signed the register, before they were taken to their room where they saw the notice for the first time. The rights of the contractual parties cannot be altered by later notice of additional terms brought to their attention only after the contract has been entered into.

Note: If it had been established that the Olleys had stayed at the hotel before, it might have been argued that, when contracting, they were aware of the notice in the room and that they impliedly agreed to it as part of the contract. This was not the case.