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Ask question #MiniGrant sells second hand motor vehicles from his Sydney car yard. Grant enters into a contract with Eagle Eye Security whose guards are required to patrol his premises every night. One night Andy, the security guard on patrol, lights a cigarette and throws the match into what he thinks is a puddle of water but is, in fact, oil which catches fire and then causes an explosion that destroys the car yard and all the vehicles contained therein. The contract between Grant and Eagle Eye includes the following clause:

Eagle Eye Security shall not be responsible, under any circumstances, for damage or injurious act caused by an employee of the company unless such act could have been foreseen and avoided by the exercise of due diligence on the part of the Company as his employer.

a) What will you advise Grant who has come to you very distressed and fully expecting to successfully sue Eagle Eye? (NB ignore any possible statute law issues)

b) Ignoring any possible statute law issues, what would your advice be if the clause was different to the one above, instead stating the following?

Eagle Eye Security does not accept responsibility for any loss or damage to property however such loss or damage may arise or be caused.






mum 100 words accepted#

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