Question

In: Operations Management

The Paria Oil Company is seeking police protection for the duration of industrial turmoil at its...

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.

1. What kind of contract is this?

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

                                                                                                                                   

Solutions

Expert Solution

1. What kind of contract is this?

When the specifics of placing police officers outside the premises were addressed by Paria and the police they made a deal. Any contract has two key elements-offer and acceptance. The police were offering their rate- $5000 a day. The offer was accepted by parial oil, and the officers were deployed. When an offer made is accepted, it is important to respect a contract and a contract. We can clearly describe that as an Oral contract.

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

First of all the CEO of the Paria Oil Company has agreed to pay for the police protection. In most of the countries across the globe, an exclusive police protection for two months on a private property does not come under the category of citizen rights. Moreover, the Commissioner of Police has specifically indicated that the company has to pay $5000 per day for 10 officers. Parla company has asked for a special service from the police, and they must pay for it. Commissioner has sent an invoice to the company. So, from this, it is evident that there is a legal provision for these activities by the police.

Hence, the company CEO has to face charges for agreement violation, if they refuse to pay for it.

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