Question

Grant sells second hand motor vehicles from his Sydney car yard. Grant enters into a contract with Ace Security Company whose guards are required to patrol his premises every night. One night Georgie, the Ace security guard on patrol, lights a cigarette and throws the match into what she thinks is a puddle of water but is, in fact, oil which catches fire and then causes an explosion that destroys the car yard and all the vehicles contained therein. The contract between Grant and Ace includes the following clause:

Ace Security shall not be responsible, under any circumstances, for damage or injurious act caused by an employee of the company unless such act could have been foreseen and avoided by the exercise of due diligence on the part of the Company as his employer.

What will you advise Grant who has come to you very distressed and fully expecting to successfully sue Ace Security Company? (NB ignore any possible statute law issues).

a)         State the issue you need to consider. (1mark)

b)        State the relevant legal rule relating to this problem. (1 mark)

c)         State the main case related to this problem. (1 mark)

d)        Based on this information, if Grant sued the security company for the destruction of his car yard would he win in court? What is your answer – yes? or no? Explain your answer.

Answer 1

Hello,

Basing on the above information,the following answer is given:

A. State the issue you need to consider?

Ans:Ace, a security guard being in the patrol lights a cigarette and throws the match into what she thinks is a puddle of water but is, in fact, oil which catches fire and then causes an explosion that destroys the car yard and all the vehicles contained therein.

B. State the relevant legal rule relating to this problem?

Ans:According to the contract Act, The security guard is not responsible, under any circumstances, for damage or injurious act caused by an employee of the company unless such act could have been foreseen and avoided by the exercise of due diligence on the part of the Company as his employer.

C. State the main case related to this problem.?

Ans:Ace, the security guard have lit a cigarette and throws the match into what she thinks is a puddle of water but is, in fact, oil which catches fire and then causes an explosion that destroys the car yard and all the vehicles contained therein.

D. Based on this information, if Grant sued the security company for the destruction of his car yard would he win in court? What is your answer – yes? or no? Explain your answer.

Ans:According to the above information, when the security guard Ace lit the cigarette and throws the match mistakenly in the oil.Even Ace had mistakenly thrown the match in the oil thinking it as water he is liable for the act because he should have seen properly before throwing the match and after the car yard catches fire hw would have been call the fire station or would do any act for reducing the fires.But he didn't have done the things that would reduce the fires.So, he is liable for the act.And if Grant sued the security company for destruction of his car yard he will win in court.

So,the answer is 'YES'.

Thank You.....