“Hotel exclusion clauses in bedrooms cannot be incorporated into contracts made at reception.”
The Court of Appeal held in favour of the Olleys. The exclusion clause was not incorporated as the contract was formed at reception before the guests could see the bedroom notice.
The Olleys booked into the Marlborough Court Hotel and paid at reception. Their belongings were stolen from their room. The hotel sought to rely on an exclusion clause displayed inside the bedroom.
Whether an exclusion clause displayed in a hotel bedroom could be incorporated into a contract made at the reception desk.
The court applied the principle that reasonable notice of exclusion clauses must be given before or at the time of contract formation. The contract was complete when the guests registered and paid at reception, before seeing the bedroom notice.
This case reinforces the timing principle from Chapelton v Barry UDC and is particularly important for the hospitality industry. It demonstrates that the moment of contract formation is crucial for determining which terms can be incorporated, making it essential study material for contract law students.
Exclusion clauses cannot be incorporated into a contract if notice is only given after the contract has been formed, even if performance is ongoing.
The Court of Appeal held the hotel could not rely on exclusion clauses in the bedroom as the contract was formed at reception before guests saw the notice.
It reinforces the principle that contract formation timing is crucial for term incorporation and provides practical guidance for the service industry.
The court discussed the general duty of care owed by hotels to guests and the limitations on excluding liability for negligence.
OSCOLA Citation
Olley v Marlborough Court Ltd [1949] 1 KB 532
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[2026] UKSC 1
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