Law of Vicarious Liability, Breach of Contract and Negligent Misstatements

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Contents
Solution.......................................................................................................................................................2
Introduction.................................................................................................................................................2
Issue 1.........................................................................................................................................................2
Rule.........................................................................................................................................................2
Application of law...................................................................................................................................2
Conclusion...............................................................................................................................................3
Issue 2.........................................................................................................................................................3
Rule.........................................................................................................................................................3
Application of Law..................................................................................................................................3
Conclusion...............................................................................................................................................4
Issue 3.........................................................................................................................................................4
Rule.........................................................................................................................................................4
Application of Law..................................................................................................................................5
Conclusion...............................................................................................................................................5
Reference List..............................................................................................................................................6

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Solution
Introduction
The present solution deals with the law of vicarious liability, breach of contract and the law of
negligent misstatements. All the laws are applied before reaching at the just conclusion.
Issue 1
Whether Ellen has a claim against the council in relation to the advice she had received?
Rule
Vicarious liability exits in a relationship of a master –servant or employer-employee, etc.
Vicarious liability signifies that the employer is held accountable for the acts of the employee
and any liability that is generated from it provided the acts are within the employment course.
The main requirements to prove vicarious liability include: (Sykes 1988)
i. That the parties are sharing a relationship of an employer and employee (Hollis v
Vabu [2001];
ii. That the employee is acting within the commands of the employer;
iii. That under such directions and commands an act or omission is incurred by the
employee (Deatons Pty Ltd v Flew [1949];;
iv. Because of such acts and omissions there is some loss that is caused to the outsider;
v. The employee is not acting in his individual capacity.
Since, the employee is representing the employer, thus, the liability that is originated will fall on
the employer and not on the employee.
Application of law
Ellen intends to operate her own meditation studio. She finalized premises but before making a
12 month lease she decided to inquire whether there is any construction work that is to be carried
near the area as it wills fact her mediation centre. She visited the nearby council and enquired
amount the same from the council.
It is submitted that an employee of the council was present at the enquiries section. Thus the
employee is the worker of the council so they share a relationship of master servant.
Also, the employee was working under the command and directions of the council.

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The employee after having a brief look at the computer submitted that there is no construction
word that is carried out in near time. Based on the information provided by the employee, Ellen
makes a contract for the premises to use as her mediation centre. But, a construction work soon
started which will be carried for next 6 months.
So, Ellen suffered loss of business and mental order.
It is submitted that Ellen has full right to sue the council under the vicarious liability because loss
is caused to her because of the employee who is acting within his course of employment.
Conclusion
So, Ellen has full right to sue the council under the law of vicarious liability for the advice that is
received by her from the employee.
Issue 2
Is there a breach of contract between Ellen and the landlord for non-payment of rent?
Rule
When a contract is made then every contract comprises of terms, which can be express and
implied. The terms which are mutually decided by the parties are express in nature and the terms
which are made part of the contract by implications are implied terms. The terms can further be
classified as conditions and warranties based on the importance they hold in any contract.
(Latimer 2012)
The terms which are roots and heart of any contract and without which no contract can be
operated are condition. These are essence of every contact and it is obligatory on the parties to
comply with the terms otherwise the main reason for the establishment of the contract lapse. If
any condition is not performed by the parties, then, the aggrieved party can cancel the contract
and claim damages (Poussard v Spiers and Pond (1876).
But, the terms which are additional to the main terms of the contract are called warranties. The
terms which are not the heart and soul but are required so that a contract can work effectively, if
such terms are not performed by the parties then it will not result in losing the essence of the
contract but the aggrieved party can also seek damages for the breach (Bettini v Gye (1876)
Application of Law
Elle after relying on the advice of the employee of the council enters into a 12 month lease with
the landlord. But, the advice was later found to be false as there was construction work that was
carried out in the vicinity and that will continue for t least 6 months. Because of the construction
work the meditation centre of Ellen was not working g ell which has led her into financial
difficulties. This has resulted in anon payment of the rent.