Question

Business Law

The Paria Oil Company is seeking police protection for the duration of industrial turmoil at its Head Office, due to layoff caused by the Covid 19. During discussions with the Police to deal with the turbulence, the Police suggested that a mobile patrol would be adequate because the disorder was largely contained. However, the CEO of Paria insisted on permanent police presence. The CEO then offered to compensate the Police, if they agreed on a permanent on site presence during the turmoil.

The Police thereafter indicated that they will provide 10 officers at a rate of $5000 per day, which they will maintain during the entire strike period. A few weeks after the strike was over, the Commissioner of Police, sent an invoice to Paria Oil Company for the cost of protection for two months. However, Paria Oil refused to compensate, and argued that the Police have a duty under law to protect the company from any pending violence and lawlessness.

The Commissioner of Police has sought your advice on the matter. Can you please advise him?

Instructions: Use the IRAC(ISSUE, RULE, ANALYSIS and CAPACITY) method

Answer 1

Parial oil must compensate. This is because when Paria and the police discussed the details of putting police officers outside the premises, they made a contract. Any contract has two essential elements- offer and acceptance. The police offered their rate- $5000 per day. Parial oil accepted the offer and got the officers deployed. When an offer which was made gets accepted, thats a contract and a contract must be honored.

The twist here is that, though, Paria oil is claiming that since its police duty to protect anyway, they dont have to pay. But the case is this that the police protecting for free (not strictly, as taxes do get paid) is a contract. When Paria accepted commissioner's offer, they created a new contract- which supersede's the earlier offer. Another example would be that McDonald's sells a burger for $3, but if you make a contract that they will sell it for $2 to you, they cant go back on it. Even though they indeed do sell the same Burger at $3, this is now a different contract.

Similarly, the police and Paria made a new contract and that must be honored. The police should sue Paria oil.