Question 3   The Unemployment Program of the Government of Guava Land has several offices throughout the country, ten (10) to be specific. At these offices, all the administrative matters of the Program are administered, inclusive of payments to suppliers, payroll and Information Technology services. There are several assets and confidential data on each compound such as computer equipment, filing cabinets, personal data and several pieces of furniture.   Within recent times, there were numerous burglaries’ at a number of locations, which resulted in the loss of two million dollars’ worth in items. The Police are currently undertaking an investigation to catch the culprits.   The Minister, who is responsible for the Program, has mandated the Program to procure security services for one year at each location. After a highly competitive procurement process, Big Trouble Security Services secured the contract to provide security services at all the locations.   The Unemployment Program and Big Trouble Security Services met on several occasions to finalize the written contractual obligations. Finally, on March 31st 2019, they agreed on all the terms of the contract and both parties duly signed. One of the agreed terms is that “Big Trouble Security Services   under no circumstances will be held liable for any unforeseen acts committed by its officers during the provision of services to the Unemployment Program”   Raymond Tin Foot, a security officer from Big Trouble Security Services, was assigned to the Harlem Office for the last six months for the 6pm to 6am shift.  Raymond, who is also a resident of the Harlem area, invited several of his friends during his shift, to lime and have a cook out at nights as a means of passing the time. This involves the lighting of a fire as well as occasional drinking of alcohol on the premises.   Big Trouble Security Services – Manager and Owner – Mr. Lazy, on one of his rear occasional visits to the Harlem Site, saw what was going on at this office.  He quietly told Raymond “to please keep everything under control so that no one will know”.   Mr. Lazy as per contractual obligations must visit the site every night to ensure that the guards are performing their functions efficiently and effectively. However, this has never been done, because Mr. Lazy treasure his sleep very much.  Additionally, Mr. Lazy did not want to take any affirmative action, because he feared that Raymond might leave the job. Indeed, Big Trouble Security Services is having problems recruiting security guards in this area and as such, if Raymond left the job there will be no available guard for this location.   One night, while Raymond was cooking and consuming alcohol with his friends, forgot to extinguish the fire. They all fell asleep and subsequently the Harlem Compound of the Unemployment Program was destroyed.   The Unemployment Program intents to sue Big Trouble Security Services for breach of contract due to the negligence of their employee Mr. Raymond Tin Foot. However, Big Trouble Security Services is seeking to rely on the following agreed term of contract, which excludes them from liability, that is – “Big Trouble Security Services   under no circumstances will be held liable for any unforeseen acts committed by its officers during the provision of services to the Unemployment Program”   Advise the Unemployment Program, whether or not Big Trouble Security Services can rely on the above mentioned exclusion clause in the face of a  fundamental  breach of  contract due to the destruction of the compound.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Question 3

 

The Unemployment Program of the Government of Guava Land has several offices throughout the country, ten (10) to be specific. At these offices, all the administrative matters of the Program are administered, inclusive of payments to suppliers, payroll and Information Technology services. There are several assets and confidential data on each compound such as computer equipment, filing cabinets, personal data and several pieces of furniture.

 

Within recent times, there were numerous burglaries’ at a number of locations, which resulted in the loss of two million dollars’ worth in items. The Police are currently undertaking an investigation to catch the culprits.

 

The Minister, who is responsible for the Program, has mandated the Program to procure security services for one year at each location. After a highly competitive procurement process, Big Trouble Security Services secured the contract to provide security services at all the locations.

 

The Unemployment Program and Big Trouble Security Services met on several occasions to finalize the written contractual obligations. Finally, on March 31st 2019, they agreed on all the terms of the contract and both parties duly signed. One of the agreed terms is that “Big Trouble Security Services   under no circumstances will be held liable for any unforeseen acts committed by its officers during the provision of services to the Unemployment Program”

 

Raymond Tin Foot, a security officer from Big Trouble Security Services, was assigned to the Harlem Office for the last six months for the 6pm to 6am shift.  Raymond, who is also a resident of the Harlem area, invited several of his friends during his shift, to lime and have a cook out at nights as a means of passing the time. This involves the lighting of a fire as well as occasional drinking of alcohol on the premises.

 

Big Trouble Security Services – Manager and Owner – Mr. Lazy, on one of his rear occasional visits to the Harlem Site, saw what was going on at this office.  He quietly told Raymond “to please keep everything under control so that no one will know”.   Mr. Lazy as per contractual obligations must visit the site every night to ensure that the guards are performing their functions efficiently and effectively. However, this has never been done, because Mr. Lazy treasure his sleep very much.  Additionally, Mr. Lazy did not want to take any affirmative action, because he feared that Raymond might leave the job. Indeed, Big Trouble Security Services is having problems recruiting security guards in this area and as such, if Raymond left the job there will be no available guard for this location.

 

One night, while Raymond was cooking and consuming alcohol with his friends, forgot to extinguish the fire. They all fell asleep and subsequently the Harlem Compound of the Unemployment Program was destroyed.

 

The Unemployment Program intents to sue Big Trouble Security Services for breach of contract due to the negligence of their employee Mr. Raymond Tin Foot. However, Big Trouble Security Services is seeking to rely on the following agreed term of contract, which excludes them from liability, that is – “Big Trouble Security Services   under no circumstances will be held liable for any unforeseen acts committed by its officers during the provision of services to the Unemployment Program”

 

Advise the Unemployment Program, whether or not Big Trouble Security Services can rely on the above mentioned exclusion clause in the face of a  fundamental  breach of  contract due to the destruction of the compound.

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