Question 2 (30 marks)

David was employed by High Efficiency Company Limited (High Efficiency) as Sales Manager two years ago. He was authorized to use the company car for visiting his clients from time to time only after getting prior approval from his boss, the Director of High Efficiency. When he was working in his office last Friday, his girlfriend called to ask him to take her mother to hospital urgently. David took the company car without the knowledge and approval of his boss. While he was driving his girlfriends mother to hospital, he kept on talking to his girlfriend. As he did not stay focused while he was driving, he did not notice that the traffic light had turned red. When he tried to brake, he ran into a pedestrian Tom whose legs were injured.

While Tom was recovering from his injury, his neighbour Mrs. Nice visited him one day and volunteered to clean his apartment three times a week until he had fully recovered from his injury. After having recovered from his injury, Tom wished to thank Mrs. Nice for what she had done for him. Therefore Tom said to Mr. Nice that he would give her his antique vase as appreciation for his help. The next day Mrs. Nice asked Tom for the antique vase but Tom refused to give her anything.

Required:

1. Discuss whether Tom can take legal action against David to claim compensation for his injuries on the grounds of negligence. You are required to cite a relevant case in your explanation. (18 marks)

2. Advise High Efficiency Company Limited whether it is vicariously liable for Toms injury. (7 marks)

3. Advise Mrs. Nice whether she is entitled to bring a claim against Tom for his failure to honour his promise. You are required to cite a relevant case in your explanation.

(5 marks) [Total for Question 2: 30 marks]