After the COVID-19 epidemic, Adam went on vacation to Gold Coast on October 1, 2022. He was given a room key and a receipt at the hotel's check-in counter on the Ground Floor after paying the room and board expenses. Adam accepted the receipt without having read it. The following provision/clause was printed on the receipt's back:

"The hotel will not be liable for any loss or damage whatsoever to anything left in the room caused by the negligence of the employees or agents of the hotel and it is the sole responsibility of customers to take care of their belongings."

A member of the hotel's staff directed Adam to his room. After leaving his belongings in the hotel, he joined his pals for supper. Adam discovered that his stuff was stolen upon his return.

On the basis of the exemption or exclusion provision printed on the back of the receipt, the hotel refuses to bear any liability.

Required:

Discuss if the exemption or exclusivity clause is legally enforceable and advise Adam whether he may sue the hotel under contract law. Case law must be cited to support your response.

Marking Guide

• Identifying the legal issues (3 marks)
• Identifying the relevant case law (3 marks)
• Applying the law to the facts (8 marks)

Students are expected to discuss the following matters with reference to the case law:

• Discussion of the exemption or exclusion clause
• Discussion of the validity of the exemption or exclusion clause
  • Did Adam sign a contract?
  • Did Adam have knowledge of the exemption or exclusion clause?
  • Was Adam given notice of the exemption or exclusion clause?
  • Timing of the notice
  • Can knowledge of the exemption or exclusion clause be inferred?
• Conclusion drawn from the arguments presented