Business Law

On 1 December 2020, three friends, Chloe, Alya and Sabrina went to Sarawak and stayed at the Mayang Sari Hotel. The terms and conditions of the hotel had an exemption clause which stated, "Mayang Sari Hotel will NOT be responsible for any loss or damage, howsoever caused, to the customer's goods whilst staying in this hotel." This was placed on a notice at the reception counter and wall. Chloe had booked her room online, whereby full payment was made to secure the booking. In order to complete the booking, she had to agree to the terms and conditions on the hotel's webpage. She clicked "I accept" to those terms and conditions which included the exemption clause, although she had not read the terms and conditions. Alya made her booking through a travel agent, who then explained the terms and conditions of the travel agency. Alya was also warned that if she was not satisfied with the hotel in anyway, the travel agency would not be responsible. Sabrina did not make any prior bookings but managed to get a room as a walk-in guest. Both Alya and Sabrina were only aware of the exclusion clause that was put behind the door in their rooms. The exemption clause was similar to the notice placed at the reception counter and wall. During their stay in the hotel, their rooms were broken into, and several valuable items were stolen. They would like to bring an action against the hotel but the hotel states that they are protected by the exemption clause.

Advise Chloe, Alya and Sabrina as to the effectiveness of the exemption clause in excluding Mayang Sari Hotel's liability if they attempt to claim against Mayang Sari Hotel for the loss of their valuable items.