Atom Constructions is a building firm that specialises in large projects. Atom enters into the following contracts:
(a) A contract with the Council of the City of Bigtown to demolish several old buildings on a site in the centre of the city and build a new Civic Centre. The council is rather anxious to have this building complete before the next election so the contract contains a provision that Atom will work around the clock in three eight hour shifts to complete the work in the minimum time possible. After Atom has been working for a few days the nearby residents become tired of being kept awake all night by the machinery so they obtain an injunction to prevent work from being carried out between the hours of 10 pm and 6 am. Atom will now not be able to finish the work on schedule. Advise Atom.
(b) A contract with Ace Cranes for the hire of a crane to lift large girders. When Henry, the CEO of Atom was given the hire agreement to sign he inquired as to what the “fine print’ in the contract meant. He was told that it meant that the hire company was not liable for any damage caused if the jib of the crane broke while lifting the girders. Henry signed the agreement on behalf of Atom. In fact, the clause stated that Ace would not be liable for any damage whatsoever caused by Ace’s employees in the use of the crane. In the course of the construction the driver of the crane (an Ace employee) lost control and the crane fell damaging part of the newly constructed building. Can Atom recover the cost of repairing the damage caused by the crane?
(a) A contract with the Council of the City of Bigtown to demolish several old buildings on a site in the centre of the city and build a new Civic Centre. The council is rather anxious to have this building complete before the next election so the contract contains a provision that Atom will work around the clock in three eight hour shifts to complete the work in the minimum time possible. After Atom has been working for a few days the nearby residents become tired of being kept awake all night by the machinery so they obtain an injunction to prevent work from being carried out between the hours of 10 pm and 6 am. Atom will now not be able to finish the work on schedule. Advise Atom.
(b) A contract with Ace Cranes for the hire of a crane to lift large girders. When Henry, the CEO of Atom was given the hire agreement to sign he inquired as to what the “fine print’ in the contract meant. He was told that it meant that the hire company was not liable for any damage caused if the jib of the crane broke while lifting the girders. Henry signed the agreement on behalf of Atom. In fact, the clause stated that Ace would not be liable for any damage whatsoever caused by Ace’s employees in the use of the crane. In the course of the construction the driver of the crane (an Ace employee) lost control and the crane fell damaging part of the newly constructed building. Can Atom recover the cost of repairing the damage caused by the crane?
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