Accountability of Owner to Remove Furniture

The director of a restaurant wants to install old cinema row seats alongside long tables. Since the seats are bolted and cannot be easily moved, it is assumed that there were no restrictions on moving the furniture mentioned in the agreement. As a result, the owner of the restaurant has the responsibility to remove the seats when vacating the premises. This highlights the importance of contractual terms and conditions being followed by both parties involved.

Law
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Table of Contents
INTRODUCTION................................................................................................................................3
Question 1 ............................................................................................................................................3
Exemption clause............................................................................................................................3
Question 2.............................................................................................................................................4
Question 3............................................................................................................................................4
Question 4 ............................................................................................................................................5
Question 5.............................................................................................................................................5
Question 6.............................................................................................................................................6
CONCLUSION....................................................................................................................................6
REFERENCES ....................................................................................................................................7
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INTRODUCTION
According to Australian Law, parties to the contract are required to fulfil all the essentials
elements of contract such as offer, acceptance, legal intention and consideration. In the absence of
any one element there was no legal relationship take place between the two or more people. The
present report is based on various case scenarios which will develop understanding about the varied
contractual aspects. It will shed light on the exemption clauses, leasing agreements etc. along with
their impact on others.
QUESTION 1
Exemption clause
On the basis of cited case situation, Donna is running the Cloakroom. In this, Donna has
responsibility to give a ticket to the persons who handed over the piece of clothing. In this, number
was mentioned in the front side of ticket and states on the reverse side. Hence, on such ticket
exemption was clearly mentioned such as '' we do not take responsibility or liability for clothing
checked into our cloakroom. Give case entails that Travis who was an amazing star handed over his
hat to Donna and received a ticket. At midnight, when Travis went to cloakroom to collect it then he
found that there was not. Moreover, in cloakroom, Donna confused about the person to whom he
was given the hat of Donna. In this, Donna demands for the compensation from Enterprise cafe in
relation to the hat worth of $200.
Hence, in this case situation Enterprise cafe would be liable to give compensation to Travis
for the replacement of hat. In the case of La Rose v. Nudrill Pty Ltd. (2013) it was held by the court
that an exclusion clause mentioned at the back of the receipt shall be valid and operate to restrict the
liability to pay damages (Exclusion clauses in commercial dealings, 2013.). However, it cannot be
construed to protect any of the parties against their negligent acts. However, in the event the clause
has been included in the agreement specifically to restrict the liabilities form negligent act shall be
considered valid. cannot free itself from the liability to take proper care in against to the exemption
clause. Moreover, ticket is only a receipt and exclusion clause was not incorporated into a contract
(Smets and Jarzabkowski, 2013). On the basis of this aspect it is the responsibility of the cafe and
Donna to perform their activities with high care. Further, Donna is required to check the number of
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tickets and thereby give clothes to the suitable person. Hence, by including the exemption clause
Enterprise cafe cannot limit its liability towards the guests. Thus, Enterprise cafe is legally obliged
to give compensation of $200 to Travis.
It can be stated that exclusion clause is a kind of exemption which is generally used at the
time when people or parties enter into the contract. Furthermore, it plays very vital role in reducing
or excluding liabilities of a person/party regarding performance during certain conditions or
situations. It can be stated that there are certain circumstances which are being excluded as per this
clause and these are considered as exclusion. However, it can be critically argued that these are the
clause which are generally in written form and it clearly indicates that fact that in parties entering
into contract will not be liable or cannot be held liable in certain happenings. For instances if a
person has taken membership and has joined gym, the common form of contact clearly highlights
the fact that owner of gym will not be responsible in situations where a person or the member gets
injured while doing exercise. On the contrary of this, it can be critically argued that parties and
person in contract are required to take care of the fact that the exclusion clause remains valid only in
certain situations. First and foremost among all is that exclusion clause is required to be inserted
into contract in the best possible manner. Apart from this, parties entering into contact also need to
take care of the fact that the exclusion clause inserted are not contrary to law.
QUESTION 2
The given case situation entails that in the special drink party Donna served To Boldly Go
cocktail to me and Adam that contain high quantity of alcohol. Still, being a director me and Adam
continuously talk with the guest. In this, Seamus who was invited in the party has not consumed any
alcohol at all. Seamus ran Italian restaurant which was not performed in a well manner. In the party,
Seamus said to me and Adam in relation to offering the pizza. In this, offer has been made by
Seamus about giving pizza oven worth of $5000. Hence, in this, offer has been accepted by both me
and Adam in relation to the purchasing of oven worth of $5000. Further, due to intoxication me and
Adam fallen over another guy which presents that in this we were not in condition to take decision.
In the next morning, oven was delivered by Seamus to Enterprise cafe. Hence, by
considering such situation it can be said that there was no contract has been made between the
directors and Seamus. Moreover, at the time of the formation of contract me and Adam was not in
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condition to think in a proper way. Hence, considering the judgement of Blomley v. Ryan (1954) it
can be concluded that a drunkard person shall be considered as intoxicated and shall not be
competent to enter into a valid contract (Capacity to Contract, 2016). Also in the case of Gibbons v.
Wright (1954) it was noted by the court that such contract might not essentially be unfair, but may
represent a situation of lack of understanding. Individual was highly drunk and due to this reason
this type of person is not eligible to enter into any form of contract. Apart from this, in case if
person enters into contract then it is regarded to be void. Considering the case associated with
Blomley v. Ryan (1954) any individual who is drunk is not able to enter into any type of contract.
Thus, at the time when me and Adam took alcohol were not in a condition to form a rationale
judgement. Hence, such agreement which was made between the directors and Seamus is
completely void. On the basis of the essential elements of contract due to the incapacities of the
parties agreement would not be enforceable by law.
QUESTION 3
In the case situation, it is clearly mentioned that Enterprise cafe decided to sell T-shirt and
mugs. On the basis of case, Donna was assigned with the task to put the price tag on coffee mug and
t-shirts such as $5 and $35. In this, Donna mistaken and attached incorrect signs such as on T-shirt
$5 and coffee mug with $35. On the basis of this, one day Peter who loves Star Trek saw t-shirt and
approached Donna with the aim to purchase 5 t-shirts @ 5 each. Hence, it is considered as an
invitation to treat on the basis of AGC (Advances) Ltd. v. Mc Whirther (1977), wherein the court
distinguished between the concept of offer and invitation to offer. It was specifically opined that an
offer constitutes to be one of the essential elements of the contract and non-existence of a valid offer
shall render the whole contract repudiated. However, an invitation to offer does not constitute to be
an elements of the contract, rather it is merely an invitation to the public in general to make offers to
the shopkeeper. Hence, in such cases the shopkeeper shall essentially make an acceptance of such
offers to make a binding contractual agreement. Further in the case of Blackpool & Flyde v.
Blackpool Borough (1990) it was held that products on display in the shops make an invitation to
treat, in response to which the consumers might make an offer, which may or may not be accepted
by the shopkeeper. Generally in any type of agreement it is analyzed in terms of offer and
acceptance. One party which is considered as offeror makes an offer which is one accepted by party
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the offeree. For instance if goods displayed by the firm along with the price labels are considered
as an invitation. In this, seller has complete authority to either accept or reject the proposal which
was made by an offeor or other party (Jones and Sufrin, 2014). In this, court clearly mentioned that
offeor or seller is not obliged to offer products for which offer was made. On the basis of this,
Donna and owner of Enterprise cafe has right to deny to Peter for the T-shirt. Thus, the present case
clearly reflects that owner of Enterprise cafe is not obliged to sell T-shirts to Billie @ 5 each.
QUESTION 4
Case scenario presents that being a director decision had taken by me in relation to terminate
the employment of Donna. Moreover, in the past, Donna performed several mistakes such as losing
hats, mixing up signage and getting us drunk etc. Hence, scenario entails that at the time of leaving
the organization Donna said to me that she started to join another cafe which was situated on the
corner. Along with this, she also claimed that high level of and best efforts will be made by her to
make remarkable contribution in the growth and development of restaurant. On the other side, in the
employment contract, it was clearly mentioned that she has no authority to join another cafe which
was established within the radius of five kilometres for the period of 24 months from the date of
employment. Employment contract is generally regarded as the agreement between employer and
employee that set out terms and conditions of employment. It is possible that contract can be either
in written or in oral form. This type of contract is most commonly used in the private sector for
higher level of job and in case of senior employees it can have adverse impact where weak
relationship between employer and employee can adversely affect the entire contract. Apart from
this, in the present case Donna undertook large number of mistakes which takes into consideration
mixing up of signage, losing hats and getting drunk. Further, at the time of leaving job Donna said
that she is joining another cafe which is being situated at the end of corner. Therefore, considering
the overall terms and conditions linked with employment it has been found that Donna has broken
the employment law where she was working in another cafe at a time and helped the authorities in
development of same. Therefore, this is the major issue linked with violating the terms and
conditions. In case if any individual works in particular organization then at same time it is not
possible to work in any other organization and person is not allowed to participate in other business
affairs.
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Hence, the same was signed and agreed by Donna at the time of joining Enterprise Cafe.
Thus, it is considered as an express terms in which all the terms and conditions are inserted and
agreed by both the parties at the time of the formation of contract. Thus, by referring the case of
Thornton V. Shoe Lane Parking (1971) it can be stated that clause which was mentioned in the
contract can be enforced by law. Further, it was opined that an express term may not be discussed
by the parties, but if mentioned in the contract or mentioned as a written term it shall be considerd
as an express term. Hence, in this, being a director all the aspects related to employment are
mutually discussed with Donna. Hence, she has no right to join another restaurant within the area of
five kilometres for the period of 12 months.
QUESTION 5
By referring the case situation it has been assessed that there are mainly three requirements
which landlord have to fulfil in writing are enumerated below: Exclusive possession: It is one of the main ingredients of lease which must be present in the
agreement. Exclusive possession implies for the right which was provided by the landlord to
the concerned authority in relation to making use of the premises. Determinate term: In accordance with this aspect it lessor is required to mention the
commencement period on leasing agreement. By referring the case of Furness v Bond
(1888) it has been determined that agreement in relation to the lease will be voided unless
the starting date was not mentioned on it (Vago, 2015). Thus, leasing agreement must
contain information regarding the period of lease.
 Term less than that of grantor: It entails that the period of lease agreement will be less than
the right that gantor possess. Hence, ending period of the lease must be present in the
agreement.
Along with all such aspects lease provider needs to mention clear information regarding the
landlord insurance and furnitures. Hence, by including such information lessor can make the
contract more valid.
QUESTION 6
In this case, director wants to install old cinema row seats alongside long tables. These seats
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are setting down in pair of 4 and bolted. Such furniture will not be unbolted and moved around
because it would involve lots of work. On the basis of this aspect it is assumed that there were no
aspects mentioned in the agreement related to the fixing the furniture which cannot be moved.
Hence, by considering such aspect it can be said that it is the accountability of the owner of the
restaurant to take away the seats while vacate the premises (Hiltunen, 2012). Moreover, under lease,
lessee has responsibility to perform their activities according to the contractual aspects. Hence, in
the case of default landlord has right to make sue on the owner of restaurant for compensation.
CONCLUSION
From the above report, it has been concluded that both the parties of lease is required to
perform according to the contractual terms and condition. Besides this, it can be inferred that by
including exemption clauses parties to the contract cannot limit their liabilities. In case of Domma
she has broken the employment contract where individual was working in some other organization
and supported them in their development activities. As per other scenario director wishes to install
old cinema with row seats around side table. But no such aspects were present in the agreement
which are linked with fixing of the furniture and it is the moral responsibility of the owner of the
restaurant to take away the seat while they were vacant in the premises.
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REFERENCES
Books and Journals
Hiltunen, R., 2012. The grammar and structure of legal texts.
Jones, A. and Sufrin, B., 2014. EU competition law: text, cases, and materials. Oxford University
Press (UK).
Pistor, K., 2013. A legal theory of finance. Journal of Comparative Economics. 41(2). pp.315-330.
Smets, M. and Jarzabkowski, P., 2013. Reconstructing institutional complexity in practice: A
relational model of institutional work and complexity. Human Relations. 66(10). pp.1279-
1309.
Vago, S., 2015. Law and society. Routledge.
Online
Contract Law Capacity Cases. 2016. Online. Available through:
<http://www.lawteacher.net/cases/contract-law/capacity-cases.php>. [Accessed on 18th
November 2016].
Express and implied terms of the contract. 2016. Online. Available through:
<http://www.lawhandbook.sa.gov.au/ch18s02s01.php>. [Accessed on 18th November 2016].
Exclusion clauses in commercial dealings, 2013. [Online]. Available through:
<https://www.holdingredlich.com/dispute-resolution-litigation/exclusion-clauses-in-commercial-
dealings-la-rosa-v-nudrill-pty-ltd-2013-wasca-18>. [Accessed on 29th November 2016].
Capacity to Contract, 2016. [Online]. Available through:
<http://www.australiancontractlaw.com/law/formation-capacity.html>. [Accessed on 29th November
2016].
Terms of Contract, 2016. [Online]. Available through:
<http://www.australiancontractlaw.com/law/scope-terms.html>. [Accessed on 29th November 2016].
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