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. (2 marks)

Answer rating: 100% (QA)

Basing on the above information the following answer is given A State the issue you need to conside... View the full answer