Exemption Clauses

Question 1

A woman went to an automated storage facility she had never used before. The woman put her laptop into a locker and put her money into the machine. The machine then issued the woman with a ticket that stated that the ticket was issued ‘subject to the conditions of issue as displayed on our website’. The woman did not read the words on the ticket. When she returned, the locker was vandalised and her laptop was stolen. The storage facility claimed that the ticket incorporated a clause limiting its liability for stolen items.

Can the storage facility rely on the exemption clause?

(a) Yes, because the exemption clause is only limiting liability and is not onerous.

(b) Yes, the exemption clause has been incorporated by reference.

(c) Yes, because even though the woman did not read the ticket, she is still bound.

(d) No, because the woman did not read the words on the ticket.

(e) No, reasonable notice of it was not given either before or at the time of contracting.

Answer 1

(e) No, reasonable notice of it was not given either before or at the time of contracting.

The storage facility cannot rely on the exemption clause because notice of it was provided too late. Clauses will only be incorporated if reasonable notice is given at or before the time of contracting (Thornton v Shoe Lane Parking). Although a clause does not need to be read to satisfy reasonable notice, clauses referred to after a contract is formed will not be incorporated.