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This case (McCutcheon vmac brayne [1964] 1WLR 125) demonstrates that for an Exclusion clause to be validly incorporated into a Contract, the party it favours must have taken reasonable steps to alert the other party to its existence.

Mrmc cutcheon asked his brother-in-law, Mr McSporron, to send his car to Islay on mac brayne's ferry. The ferry sank. Defending the claim for damages,mc brayne claimed that its conditions of business were displayed at the port, and were printed on its receipts. However, the court ruled that the contract was made by telephone, before mc sporron had chance to see the terms. The receipts issued were not contractual documents.mac brayne argued that it had done business withmc sporron before, and he ought to have known of the terms. However, the court ruled that these dealings, although regular, were not of a sufficiently consistent nature to claim incorporation by prior business.

Like the case of Phillips v Hyland (see: Phillips products v hyland (1987)), this case shows how the courts can strike down an unfair exclusion clause on the grounds of inadequate incorporation. Like Phillips, the court may have been less keen to do this if the injured party was a business rather than a consumer.