Q3. Uri was a magician who had been on tour with his assistant. He left four suitcases at the parcel office at Central Station in Sydney. The suitcases contained various items used in an 'escape illusion'. Uri paid $5 for each suitcase deposited and received a ticket for each one. He then left saying that he would send instructions for their dispatch. Two weeks after their deposit and before Uri had sent instructions for the dispatch of the suitcases, his assistant persuaded the clerk in the parcels office to let her open the suitcases, even though she was not in possession of any tickets. The assistant took several items.

Uri sued the railways for damages for breach of contract, and the railway company pleaded the following term, which was written on the ticket and which stated that the railway was 'not liable for loss, misdelivery or damage to any articles where the value was in excess of $10 unless at the time of the deposit of the article an extra charge was paid'. No such declaration or payment had been made. Do you think that the railway company could successfully rely on the exemption clause to protect itself from an action by Uri? Fully discuss this issue.