Commercial Law: Duty of Care, Standard, and Causation

This assignment explores the concept of negligence within the context of commercial law, focusing on a scenario involving a liquor shop. It meticulously examines the essential elements of negligence, including the duty of care owed by a licensee to patrons, especially concerning their safety and well-being, even after they leave the premises. The assignment delves into the standard of care expected, referencing cases like Balfour v. Attorney General and Dorset Yacht Company Limited v. Home Office. It then analyzes causation, emphasizing the relationship between the defendant's actions and the resulting injury, as illustrated by Deloitte Haskins & Sells v. National Mutual Life Nominees and Corke v. Kirby McLane Limited. The assignment also addresses remoteness, discussing how the foreseeability of damages impacts liability, drawing on Overseas Tankship Limited v. Morts Dock Limited. Finally, it touches upon vicarious liability and its role in the liquor shop scenario. The assignment provides a comprehensive understanding of negligence principles and their practical application in commercial settings.

Running head: COMMERCIAL LAW
Commercial Law
Name of the Student
Name of the University
Author Note

Negligence
Question
Number
Sub
part
Your
answer
Max
mark
Mark
Leave
blank
1 Duty of
care
Theory The test: in the serving of alcohol in the liquor
shop the licensee has a particular law of conducts
while he is on the duty. The duty of care serves by
him until the patrons go to home or any other
safe place. The licensee is owned the duty of care
while he is serving the alcohol and the situation
where on the particular facts. In the case of
Balfour v. Attorney General [1991] the court has
found the duty of care where the policies has
been applied.
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Application When the patron is consuming alcohol in the
liquor shop then it is the duty of the licensee that
he will take care of the patron until he or she
reached in a safe place. The liquor shop premise
are the place where the licensee own the duty of
care to take care of the patron and after he or
she will drive toward a safe place or home then it
is important to take care of the parson.
When the duties are foreseeable for affecting the
action, the relations are establishes with the
sufficient proximate where the duty of care has
been owned.
2.Standard
of care
Theory Set out the test for the standard
The standard of care has only applicable where
the court must prove the terms of duty of care of
the licensee in the liquor shop. If it is found that
the licensee has breach standard of duty of care
then the cost of preventing breach will be
claimed.
According to the given notes the standard of care
applied on the basis of duty of the care is applied
for the defendant towards the plaintiff. In such
matter in the liquor shop if anyone face any
accident after that person go out of the liquor
shop then it is important to for the licensee to take
care toward the patron.
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Application In the business the licensee of the liquor shop is
required the standard of duty of care towards the
consumers. The standard of care depends
according to the degree of prudence and caution
for the individual person who is required to be
under the duty of care.

Application According to the notes, Dorset Yacht Company
Limited v. Home Office [1970] case it has been
found the standard of duty of care. Therefore
here it is must to state that according to the
standard of care the licensee of the liquor shop
should serve alcohol to the patron who is
required to have it. The licensee, manager and
other sales staff should serve the proper services,
who are related to the liquor business.
3. Causation Theory The causation only occurs when it is used in the
situation of the injury. It is only applicable when
any inchoate offence occur which is known as
mens reus. There should be a relationship must
established between the causation and liability.
Therefore the defendant should own the duty of
care towards the plaintiff when he was serving in
the liquor shop.
In the case of Deloitte Haskins & Sells v.
National Mutual Life Nominees (1991) where the
causation was
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Application The person who is owned the duty of care can use
the causation as defence while the plaintiff is
injured and the relation has been established
between the causation and liability. A liability
from the defendant has establishes.
after consuming alcohol if someone got
any injury or have heart attack or any other
health injuries occur then it is the duty of the
licensee that he must explain the situation and
establishes the liabilities of the duty of care and
while it should use the causation as defence.
Corke v.Kirby McLane Limited [1952] is a case
where the causation has been applied in the ‘but
for’ test where the damages was caused due to
some any particular
4.
Remoteness
Theory The remoteness is the part in the breach of duty
of care where the plaintiff could claim the
damage according to the remoteness of the
cause of action where the liability of defendant
has establishes. The directness and foreseeability
of the injury will define the quantity of the
damage of the plaintiff.
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Application The application of the remoteness will define
according to the damage of the plaintiff. After
consuming alcohol, the patron leaves the
premises of the liquor shop and got any injury
due to the intoxication then it will stated that the
licensee breached the duty of care at the service
of the duty. The directness approaches of
remoteness in damages only applicable when the
standard care of duty establishes the liability of
defendant whether it will unpredictable or not
usual damages. The foreseeability of the
damages defines when damage could be
recoverable or where the compensation is
possible to provide to the plaintiff.
Overseas Tankship Limited v. Morts Dock Limited
[1967] where the remoteness has been found for
losses of a kind reasonably foreseeable for failure
to duty of care.
Application The estimation value of the remoteness depends
on the damage of the plaintiff. If it has been
proved that the defendant is liable for the
damage due to the breach of the duty of care
then the damage will be paid. The compensation
for the damage always measured with the
liquidation which is the capital amount for the
damages.
5. Vicarious Theory The vicarious liability defines the secondary
liability of the defendant has failed to take care
to another person whom with a valid relationship
established under a reasonable circumstances.
The vicarious liability will never cause any injury
to whom the legal relation has been establishes.
The liabilities only depend on the accordance of
the respondent superior for the imputed
negligence.
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Application In the premises of the liquor shop the licensee
owned the duty of care. When the patron is
required for the proper duty of care, then the
licensee can held liable for the vicarious liability

toward the plaintiff as a respondent superior. The
determination of the situation is only acceptable
as per the breach of duty of care.
Application According to the terms of the vicarious liability if
it is found that B is responsible for the Y’s action
then it will recognize as the vicarious liability of B.
Therefore if someone has recognized for the
action of the plaintiff due to the intoxication then
it is important that the licensee must not force to
intoxicate in the liquor shop premises. For the
breach of duty of care can be occur by the
defendant when he or she owned any duty
towards another person.
Q # Law that applies
explained
How this will
affect your
business: You
may add facts
here.
What is your aim
in dealing with
this issue
Your policy
statement
and/or process
to achieve the
aim
Ma
x
Mar
k
Mar
k
Leav
e
blank
PART A FORMATION OF CONTRACT
Advertisemen
ts
In the business
policy a proper
and appropriate
of advertise is
always required.
In the policy
documents
should includes
with the every
objective of the
The business
policy should
prepare for a aim
where they can
achieved the
success while
they are running
the business.
The business
agreement is one
The legal value
or the legal
intention is must
require for the
business
structures. The
authority of the
business must
form the
structures where
The business
policy need to
application in
the business
where a
structures
frame work
must required.
In the every
aspects of the
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business aspects
and scope of the
business
statutory factors
also includes.
The proper time
and the cost of
the policy also
included in the
offered
advertisement.
The
advertisement
will help to
promote the
business for the
shop owner and
attract the
consumer.
of the important
while the
business
constructor is
structured for
the business.
the business will
be process
according to such
principles. The
advantages of the
business are
more required
rather than the
aspects of the
beneficial in the
business.
business the
authority of
the business
should control
and maintain
every business
strategies for
the formation
and process of
the business.
Enquiries In this business
the dealing with
customer the
according to the
need of
customer..
before formation
of the concert
details of
information is
required and 1
party will
propose about
the business
policy and other
wheel except the
offer the parties
have rights to
enquiry about
the legal validity
of the contract
the legal
intention and
how long the
contract will
applicable and if
any legal
According to
this business and
the strategies
formation of the
contract should
follow every
legal
consequences
which will be
beneficial for
both parties if
any obligation
arise due to
absence of
elements of
contract then it
will direct Lee
affect the
business enquiry
is one of the
important part
for the process
of business. The
am the aim
should be Run
successful
business through
The enquiry
process should
follow the
legal terms
where both of
the parties will
provide every
detail
information
about the
status and their
strategies
about
formation of
the business
the intention of
the contract
should
establish legal
factors the
enquiry
process should
follow the
business
policies term
of the
formation of
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consequences or
other
consequences
regarding the
business is
needed all
should be
mentioned in the
contract
according to the
business policy
the both of
parties will able
to from those
contract where
they make the
process of the
business policy
the business
policies into the
contract
contract.
How long
will the
contract
remain open
for
acceptance?
According to the
formation of
contract it could
be form written
or verbally
where the
elements of the
contract should
present like
offer acceptance
legal intention
mutual consent
consideration
lawful object.
The both of the
parties will
accept the terms
and conditions
mutually where
they must
mention about
the long validity
of the contract.
The aim of the
contract should
reflect on the
formation of the
contract it must
set particular
terms and
conditions which
will be obeyed
during the
continuation of
the contract it is
important that
the contract
should establish
the legal values
along with the
consideration
between the
parties.
According to the
formation of
contract the time
of the mentioned
period the
contract will be
applicable where
the acceptance
could be possible
in up for a
particular time
therefore for an
acceptance to
offer terms the
what the party
who will accept
the offer can
accept after the
offer for a
particular time
and form the
contract.
A business is
depends on the
various
business
policies which
will help to the
business to run
successfully
and the
counter offer is
recognise as
one of the best
and most
common in
every liquor
shop where it
provides the
services in low
cost and help
the parties to
form the
contract which
will be more
beneficial to
the counter
offers.
3
Counter –
offers
For the counter
offers the
The counter
offer is one of
The counter
offers sometimes
3

contract will be
applicable for a
certain time or a
certain period
where it will
provide offers to
the party who
will accept the
offer according
to the strategic
business policy
accounted offers
Hills to the offer
to gain extra
benefit from the
another party
there is no
particular way
of form the other
parts it is the
part of invitation
to offer where
the offer will be
given through
any poster or
any
advertisement
and the party
who will accept
the offer must
follow the terms
and conditions
and process
according to the
counter offers
the person who
asking for the
acceptance and
the person who
accept the offer
both will be
benefited under
the counter
offers.
the strategic
business plan in
the marketing
business where
it will help to
attract the other
party who will
accept the offer
and use the
services
therefore the
more offers
helps to gain
more profits
under some
circumstances.
provide more
benefits rather
than normal
transaction in the
business a person
who is seeking
are useful service
in low cost then
the counter offers
help that person
to get more
benefit through it
it is also more
beneficial for the
individual who
are want to
accept the offer
and use it
individually
therefore the
counter offer is
one of the best
strategic business
implementation
in the legal
services.
How
acceptance of
According to the
confirmation of
The aim of the
acceptance of
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the offer by
the customer
will happen.
contract the
acceptance is
one of the
important part
where the
customer exit
the contract
terms which will
be helpful for
them the terms
of the offer
always form
according to the
mutual concept
of both parties
therefore the
accepted will be
applicable after
the opposite
party accept the
offer and act
according to the
terms and
conditions of the
company.
the offer should
be the customer
because a liquor
shop only Run
according to the
presence of
customers where
it should be
focused on the
customer
behaviour needs
accuracy in the
work everything
PART B INTENTION TO CONTRACT
Description
of a contract
with a
supplier to
your
business.
The supplier should supply products according to the constitution of the company and
the price will be set according to the terms of the contract. The supply of the products
should be applicable for valid products. For the liquor shop, the supplier must be
registered according to the Sale and Supply of Alcohol Act 2012 of New Zealand. The
supply of the good should deliver according to the mentioned time of the agreement.
The supplier will get the payment after the delivery of the payment and the owner of the
business also give payment after the delivery of the goods. They must enter into a valid
agreement with legal intention. Te agreement also contains of mutual promises between
the both parties. If the supplier fails to provide goods according to the mentioned time
then the owner will terminate the contract but here the supplier can negotiate the term.
The Law of
intention to
contract
explained
- Inclu
de
both
dome
stic
The intension to create legal contract is one of the element in the formation of the
contract. The intension explains the legal bindings between the parties at the time of
formation of contract. In the domestic agreements the contracting parties should have
the serious intention to form the contract. Without the legal intension, an agreement
never forms. If any legal intension not possible to create then the parties can take legal
action against of each other. without the intention to create legal contract the agreement
will be lack to binding the effects and it will affect the parties to involved in future for
further process.
In the commercial purposes the presumption or intention they should be binding in the

and
com
merci
al
agree
ment
s.
(this is
theory only)
contracts. In the case of Kleinwort Benson Ltd V Malaysia Mining Corporation Bhd it
has been find that the commercial business is important in the contract.
Your
contract
statement to
change the
default law
set out
above.
(this is
application)
The both of the parties are required to have a common intension in the contract.
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PART C CONSIDERATION
Descriptio
n of a
contract
with the
customer
The consideration is the legal values in the contract where the party who give the offer
must make promise to another party when they forming the contract. The consideration
only made when the one party promise to fulfil the offer to another party. Customer
service includes greeting customers upon entry, waiting on
Customers, including but not limited. Perform general cleaning maintenance in the store.
Loss prevention responsibilities and perform all other related duties and responsibilities
Theory –
explain
(briefly)
what
considerat
ion is and
when it is
Ability to promote and market products, and answer customer questions regarding
Products, work evenings and weekends, and some holidays, proactively greet customers,
be friendly, professional, polite and helpful in dealing with customers and employees
knowledge and ability with basic computer operations, read and speak fluently in English.

required.
Applicatio
n –
describe
the
considerat
ion for
your
contract.
However, if A formed a contract with B where it must include the B will give $9000 to A
for buying a guitar from him. Here, the $9000 is the consideration of B and the guitar is
the consideration of A. It is the form of the common contract law where the consideration
has been made before the contract. The doctrine of consideration only provide the
irrelevancy in many jurisdiction where the commercial stabilities represent the promises
along with the given deed where the contractual consideration should represent it.
Sometimes due to the less consideration it made the contract void.
Descriptio
n of the
variation –
what do
you want
to change
and why?
The change is variable in the consideration according to the requirement of the contract.
Theory –
explain
the legal
requireme
nts for a
variation
of contract
The promisee must give the consideration to the promisor where it should be sufficient and
can be illusory. Consideration always gives the present reflection when the contract had
been formed. The duties of the contact never consider the terms o f consideration where
the promisor will not included the part payment as a recognized consideration which also
define the good consideration.
Applicatio
n – how
can you
achieve a
variation
of the
contract?
(What will
you have
to do or
offer)
The term of contract require consideration where it require the basic elements of the
consideration.
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PART D ELECTRONIC TRANSACTIONS

Cut and paste
your example
of either the
customer or
supplier
contract
According to the confirmation of contract the acceptance is one of the important part
where the customer exit the contract terms which will be helpful for them the terms of
the offer always form according to the mutual concept of both parties therefore the
accepted will be applicable after the opposite party accept the offer and act according to
the terms and conditions of the company.
When and
where is that
contract
formed if
using written
communicati
on (letters) –
assume the
postal rule of
acceptance
does NOT
apply
The Electronic Transaction Act 2002 gives the laws and legislature to use the electronic
technology for the transaction in business for make the communication with the
customers. According to the act this law also allows the usage f the email and other
usable electronic technologies as per the need for running the business.
When is this
contract
formed if the
communicati
ons are by
email?
Where are
the parties
legally
located when
the contract
is formed.
The act allows the employees in the business company to email the important
documents which related to the business purposes. The email or electronic technology
is only usable when the party or the customers give the access of the using the facility
to introduced a contract. However, this process is user friendly and spends less time.
The email can be use to form a contract between the s parties. Any contract can be
introduced through verbally or writing and along with it the use of email is also ethical
to start a new contract between the parties.
What is your
policy for
email
addresses for
business
communicati
ons by
email? Give
reasons.
In any business purpose the Electronic Transaction Act 2002 gives the access of using
the electronic technology to form the contract. It represents an empowering act where
the email is uses as a substitute of paper. It is only allowed the accessibility as per the
given order by the parties. The both parties must have the mutual consent to form the
contract through the electronic technology.
MAR
KS
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