ENTERPRISE LAW

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Kenyatta University *

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TAXATION

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Law

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Nov 24, 2024

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docx

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4

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1 ENTERPRISE LAW, LAWS1001 Assessment task 3 Cindy Chepkemei September 25, 2023
2 In addressing the problem scenario involving Mr. Pieters' claim against Greg for the $50,000 damage to his pool's filtration system, the key areas of law, concepts, and principles must be applied to assess the claim’s validity. The primary legal principles that come into play here are contractual agreements, negligence, and the enforceability of limitation of liability clauses. Contractual Agreements In this case, a contractual relationship was established between Mr. Pieters and Greg when Mr. Pieters agreed to hire Greg for the maintenance and cleaning of his pool in exchange for $200 per month. Contracts are legally binding agreements, and their terms and conditions are crucial in determining the rights and obligations of the parties involved. Negligence Negligence is a fundamental principle in tort law. It involves the failure to exercise reasonable care, resulting in harm or damage to another party. To establish negligence, the following elements must be proven: a. Duty of Care: The defendant owed a duty of care to the plaintiff. b. Breach of Duty: The defendant breached that duty through their actions or omissions. c. Causation: The breach of duty caused the plaintiff's harm. d. d. Damages: The plaintiff suffered actual harm or loss as a result of the breach. Limitation of Liability Clauses The enforceability of liability clauses depends on several factors, including their clarity, conscionability, and whether the party seeking protection acted negligently. Now, applying these legal principles to Mr. Pieters' situation: Contractual Agreement
3 Mr. Pieters and Greg entered into a contractual agreement for pool maintenance and cleaning services. This agreement establishes a legal relationship and obligations between the two parties. Negligence The central issue is whether Toby's deliberate failure to clean the filtration system constitutes negligence and if Greg can be held liable for it. Mr. Pieters may argue that Greg owed a duty of care to ensure that his employees performed their tasks diligently and that Greg breached this duty by failing to supervise or address Toby's potential grudge against salt water pools. Causation may be established if it can be proven that Toby's negligence directly caused the $50,000 damage to the filtration system. Mr. Pieters incurred actual damages in the form of the cost to repair or replace the damaged filtration system. Limitation of Liability Clause The clause in the brochure provided by Greg attempts to limit his liability for damages caused by his employees, except in cases of negligence on his part as an employer. To enforce this clause, Greg must demonstrate that he exercised due diligence as an employer to prevent Toby's actions or that Toby's actions were solely responsible for the damage. In this case, the outcome may depend on the specific evidence presented. Mr. Pieters may argue that Greg did not exercise due diligence in supervising his employees or preventing potential negligence. Conversely, Greg may contend that he had no reason to anticipate Toby's actions. To determine the enforceability of the limitation of liability clause and whether Greg can
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4 be held liable, the court will consider factors such as the clarity of the clause, the circumstances surrounding Toby's actions, and whether Greg fulfilled his duty of care as an employer. Consulting with a legal expert experienced in contract law and negligence is essential to navigate the complexities of this case and determine the best course of action.