The Unemployment Program of the Government of Guava Land has several offices thr

Question

The Unemployment Program of the Government of Guava Land has several offices throughout the country, ten (10) to be specific. At these offices, all the administrative matters of the Program are administered, inclusive of payments to suppliers, payroll and Information technology services. There are several assets and confidential data on each compound such as, computer equipment, filing cabinets, personal data and several pieces of furniture.

Within recent times, there were numerous burglaries at a number of locations, which resulted in the loss of million dollars’ worth in assets. The Police are currently investigating this matter with a view to catch the culprits.

The Minister, who is responsible for the Program, has mandated the Program to procure security services for one year at each location. After a highly competitive procurement process, Big Trouble Security Services secured the contract to provide security services at all the locations.

The Unemployment Program and Big Trouble Security Services met on several occasions to finalise the written contractual obligations. Finally, on March 31st 2018, they agreed on all the terms of the contract and both parties duly signed. One of the agreed terms is that "Big Trouble Security Services, under no circumstances, will be held liable for any unforeseen acts committed by its officers during the provision of services to the Unemployment Program”

Raymond Tin foot, a security officer from Big Trouble Security Services, was assigned to the Harlem District Office for the last six months for the 6 pm to 6 am shift. Raymond, who is also a resident of the Harlem District, invited several of his friends during his watch to lime and have a cook-out as a means of passing the time. This involves the lighting of a fire as well as, occasional drinking of alcohol on the premises.

Big Trouble Security Services - Manager and Owner - Mr. Lazy, on one of his occasional rare visits to the Harlem District Office, saw what Raymond and his friends was pursuing at this office. He quietly told Raymond "to please keep everything under control so that no one will know”. Mr. Lazy, as per contractual obligations, must visit each site every night to ensure that the guards are performing their functions efficiently and effectively. However, this has never been done, because Mr. Lazy treasures his sleep very much. Additionally, Mr. Lazy did not want to take any affirmative action, because he feared that Raymond might leave the job. Indeed, Big Trouble Security Services is having problems recruiting security guards in this district and as such, if Raymond left the job, there will be no available guards for this location.

Raymond, one night, while cooking and consuming alcohol with his friends, forgot to extinguish the fire. They all fell asleep and subsequently, the Harlem Compound of the Unemployment Program was destroyed by fire.

The Unemployment Program intends to sue Big Trouble Security Services for breach of contract due to the negligence of their employee Mr. Raymond Tin foot. However, Big Trouble Security Services is seeking to rely on the following agreed term of contract, which excludes them from liability, that is - "Big Trouble Security Services, under no circumstances, will be held liable for any unforeseen acts committed by its officers during the provision of services to the Unemployment Program”

Advise the Unemployment Program on this matter and whether or not Big Trouble Security Services can rely on the above-mentioned exclusion clause, with respect to their employee's negligence, in the destruction by fire of the Harlem Office.

Word limit 500

Kindly provide reference

Explanation / Answer

The Unemployment Program of the Government has numerous offices across the nation. Each office is laced with several critical information that needs to be protected. So a bid was conducted and Big Trouble Security Services won the contract for providing security service at all offices of the Unemployment Program. Both the companies met at several occasions to discuss about the clauses of the contract. One such clause was that Big trouble Security Services will not be held accountable or liable for any unforeseen act committed by its employees during the provision of services under this contract. This clause is a clear example of an exclusion contract.

Exclusion contract is one, which is signed with the objective to exclude one of the parties involved or limit their liability for breach of contract or any kind of negligence activity. This clause can be effective till the point:

As both the parties had duly agreed to all the terms and conditions, before signing the contract, it will be quite difficult to sue the Big trouble Company for the fire outbreak at the premises of the Unemployment Program and the negligence of its employees. The Unemployment Program needs to find any ambiguity in the negligence clause of contract. Breach of any degree can help them win the lawsuit. However, if there is no scope, then Big Trouble Security Services cannot be blamed for the loss caused due to negligence.

https://www.lawhandbook.sa.gov.au/ch10s02s06.php

https://www.lawteacher.net/lecture-notes/exclusion-clauses-lecture.php

http://www.concordnow.com/types-exemption-clauses-found-contract/

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.