Question

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?

Answer 1

The Commissioner of police can ask for compensation because there was a valid offer from CEO of Paria and the police accepted the offer.A contract has six important elements so that it will be valid which is offer, acceptance, consideration, intention to create legal relation, certainty and capacity. All these elements are present in the contract between Police and CEO of Paria.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. No doubt the contract is oral but even then it is enforceable. An oral contract is a type of business contract that is outlined and agreed to via spoken communication, but not written down. Although it can be difficult to prove the terms of an oral contract in the event of a breach, this type of contract is legally binding.

So, Para Oil has to compensate the Police.