Multiple choice

Fact: P and her husband hired a room at a hotel and paid a week`s rent in advance. When they went up to occupy the room there was a notice on one of the walls disclaiming the owners liability for damage, loss or theft of articles in the room. A thief entered the room due to the negligence of the hotel servants. Issue: Is the owner of the hotel liable?

  1. No, he is not liable because it is clearly written on the wall that hotel authorities will not be liable damage, loss or theft.

  2. Owner of the hotel is liable since the notice was not a part of the agreement as it came to the knowledge of the client after the contract had been entered into.

  3. The decision will be in the hands of client because it is a voidable contract at the option of the suffering party.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The notice disclaiming liability was brought to P's knowledge AFTER the contract was formed (after paying rent and being hired). Exclusion clauses must be brought to the other party's attention at or before the time of contracting. A notice on the wall after contract formation is not part of the agreement.

Keep practicing — related questions