Business and Corporations Law

Business and
Corporations
Law

Part A
 Martin was hired by Swimmingpool Co to find potential
clients and form contract with them to build swimming
pools.
 Martin bring 20 customers and work on some of their
projects started as well.
 Later the corporation found that the advice given by
Martin was wrong and many customers complaint that
their pools are sinking.
 Martin took the company’s money and did not
submitted the same to its bank account.
 He is also planning to start a new business in
competition to the company.

Part A
 Based on the element of vicarious liability, the
company is liable for actions of Martin.
 This principle was discussed in New South
Wales v Lepore (2003) HCA 4 case in which the
court imposed penalty on the employer for the
negligence of the employee (Chamallas, 2013).
 However, the company can still impose liability
on Martin and hold him liable for his negligence
as provided in the case of Lister v Romford Ice
& Cold Storage (1957) AC 555.

Part A
 The privity of contract principle protects
Martin from being liable towards the
customers of the company (Merkin, 2013).
 He was authorised to form the contract on
behalf of the company; thus, the liability of
breach of contract cannot be imposed on
him.
 This argument is supported by the
judgement of Tweddle v Atkinson (1861) 1
B&S 393 case.