Gabriella and James decided to go on a holiday to Tasmania, and stay in a hotel for a few days. One hotel called Sunshine Villa advertised that they had good deals to stay at the hotel for three nights for $99 per night. When Gabriella went to make the booking online the hotel website indicated that the $99 rooms were all booked out. The hotel then sent an email to Gabriella and James indicating that the couple could stay in another room for $149 per night. Gabriella and James were very keen for a holiday but were limited by a budget so asked if they could stay at the motel for $129 per night. Sunshine Villa accepted the offer and Gabriella left her credit card details. She then received a confirmation notice with information that the hotel also provided 24 hour security for guests and their property.

When Gabriella and James checked in at the hotel, they paid a deposit for three days, and were given a receipt. The hotel already had their credit card details to pay the balance later.When they arrived in their room they did not notice a sign on the back of the door that read:

"The hotel is not responsible for any loss, damage or injury that may occur during your stay in this hotel".

That night after they returned from dinner, the couple noticed that their $2000 mobile phone which was left on a charger had been stolen from their room. When told of the theft, the hotel manager denied any responsibility, and referred to the sign on the back of the door which had indicated the hotel was not responsible for any losses. Gabriella and James are very angry at the hotel and insist the manager refund them for the loss of their phone and now also give them a discount on room price for $99 per night as originally advertised.

Required: Referring to the Law of Contract answer the following questions. Use case references to support your conclusions.

A. Explain whether Gabriella and James would be successful in a claim to have their contract price reduced to $99? In your answer discuss whether there is a valid offer, acceptance and consideration.10 Marks

B. Referring to the common law of Contract discuss whether the hotel can rely on their disclaimer on the back of the room door.5 Marks