Business Law, Aunty Ems Catering School Ltd Case Study

Business Law, Aunty Ems Catering School Ltd - Case Study Example With reference to the first letter received by Emilia, a former student of the college has claimed compensation arising from the theft of her purse and bag from her assigned locker, while attending a one-day course at the college. However, the company’s managing director has straightforwardly denied that the Aunty Em’s Catering School Ltd is liable for this loss and thus defend her statement by pinpointing the exclusion clause â€Å"Aunty Em’s Catering School Ltd is not liable for any loss, theft or damage to valuables left in storage lockers.† Correspondingly, the subsequent discussion aims at investigating the rules relative to formulation of exclusion clauses to determine whether this clause excludes the company in respect of this loss. Besides, the discussion will assess whether it can be constructed to exclude liability in this situation assuming that exclusion clause is incorporated into the student’s contract. â€Å"Unfair Contract Terms Act 1977† can be apparently observed to have radical influence on the application of exclusion clause. According to this Act, exclusion clause is defined as a clause, which governs to exclude or limit liability for breach of contract and violation of implied terms or misrepresentation (Crown, 2014). On further note, it is determined that a contracting party who desires to include exclusion clause in a contract and resort upon it is ought to understand the following three requirements: Notably, the case law of Olley v Marlborough Court Hotel (1949) can be taken into concern for discussion in order to examine and acquire substantial understanding regarding the liability of the company. In this case, a hotel room was booked by the claimant Mrs Olley. A contract was made at the reception desk where an exclusion clause was not mentioned. At the back of the door, a notice displaying exclusion clause excluding hotel owners for any lost, theft or damaged property was illustrated. It was observed that a fur coat of