Collateral contracts / exclusion clause / negligent misrepresentation question. (1 Viewer)

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hey,

An exclusion clause can be estopped if there was misrepresentation for example the Curtis case with the drycleaners and saying the exclusion clause was different to what it actually was and we also did this case Snarski & Snarski v Barbarich with a statement made before the contract was intentionally misrepresenting the property and there was an exclusion clause saying "all prior assurances are hereby negivated". And this was held ineffective due to intentional misrepresentation.

The lecturer said that it would only be held ineffective in special cases not all misrepresentation cases.

I have a question on negligent misrepresentation which has been said before the contract and there is an exclusion clause stating all prior assurances are hereby negivated.. could this exclusion clause be held ineffective?

Does anyone have any case precedent on it or any idea...


Personally I think its a stretch but I dont have anything to back it up its only my opinion if i were a judge.
 

Minai

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I haven't done much work in this area, but I've got this quote from a case
"an exclusion clause in such a contract cannot protect the bailee if his/her actions are neither contemplated or permitted by the contract"

I dunno if that helps..I've only done cases involving duty of care..(ie an exclusion clause saying 'while all care is taken, we cannot take responsibility for stolen items in lockers' could be ineffective if staff wilfully open lockers, meaning resonable care hasnt been taken')
 
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natstar said:
hey just a question. What does it mean by if an agreement is not enforcable as a contract? Does this mean that there is no intention, consideration, capacity etc etc etc?
it means that a contract wasn't created, that the elements needed for a contract intent, agreement and consideration were not there.
 
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another quick question about negligence. There are critera to be satisfied if you are a professional ie doctor lawyer etc. But what deems a professional? would you consider a dance teacher to be a professional?

and would she be liable under malpractice standard of care if she was teaching a dance move that she was not experience to teach?
 
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Ribbon

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natstar said:
ok thanks..
If like a government, such as gov of NSW introduces a new land law tax on investment properties, and then the property market collapses and people's properties loose a considerable amount of worth, would the NSW gov have a duty of care to these people. This land tax is not ultra vires. What rights do these people have
When they decide if a government agency has been negligent, they make a distinction between the policy and operational powers... policy is stuff like legislating new tax, or having a policy to reject public housing applications where the applicants income is over $XX XXX a year. Operational is if they have a policy or are required to do a certain thing and they do it negligently, and someone is injured or suffers economic loss as a result. They make the distinction mainly to protect govt agencies from being sued for bad policy decisions - if the alledged negligence is a policy decision your chances are pretty much zip, but if its operational then your in. So to answer your question, the tax is a polciy decision and so the agency/govt is protected from negligence suits. Also even if it was ultra vires you couldn't sue for negligence, it just means if someone challanged the legislation it would get thrown out.
 

Ribbon

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Cookiez_n_Cream said:
another quick question about negligence. There are critera to be satisfied if you are a professional ie doctor lawyer etc. But what deems a professional? would you consider a dance teacher to be a professional?

and would she be liable under malpractice standard of care if she was teaching a dance move that she was not experience to teach?
The only 'special' criterea for proffessionals is that when you owe someone a duty of care, there is also a 'standard of care' that can be increased or diminished by the inividuals capacities. A good example is children always have a lower standard of care owed to others, and doctors, proffessionals ect. have a higher standard of care because they are proffessing to have a special skill. I am not really sure if you are headed towards tort or contract with this question, but in tort, if it was say, an extra specially hard and dangerous dance move, and she proffesses to be trained to teach it when she is not, and someone hurts themselves, the standard of care she owes is higher than the normal standard, because she has proffessed to have this special skill. In terms of contract, it would be a misrepresentation and a basis to rescind the contract or get damages if she said she was trained to teach a certain dance move (that she wasn't really) and you signed up to dance lessons on that basis.
 

Ribbon

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Minai said:
I haven't done much work in this area, but I've got this quote from a case
"an exclusion clause in such a contract cannot protect the bailee if his/her actions are neither contemplated or permitted by the contract"

I dunno if that helps..I've only done cases involving duty of care..(ie an exclusion clause saying 'while all care is taken, we cannot take responsibility for stolen items in lockers' could be ineffective if staff wilfully open lockers, meaning resonable care hasnt been taken')
I know this is a million posts in a row but... that statement relates to whats known as the 'four corners rule'. An example would be if you are authorised to sell someones house, and you sell thier car instead, any exclusion clause doesn't apply because selling thier car is not authorised by the contract.
 
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Ribbon said:
The only 'special' criterea for proffessionals is that when you owe someone a duty of care, there is also a 'standard of care' that can be increased or diminished by the inividuals capacities. A good example is children always have a lower standard of care owed to others, and doctors, proffessionals ect. have a higher standard of care because they are proffessing to have a special skill. I am not really sure if you are headed towards tort or contract with this question, but in tort, if it was say, an extra specially hard and dangerous dance move, and she proffesses to be trained to teach it when she is not, and someone hurts themselves, the standard of care she owes is higher than the normal standard, because she has proffessed to have this special skill. In terms of contract, it would be a misrepresentation and a basis to rescind the contract or get damages if she said she was trained to teach a certain dance move (that she wasn't really) and you signed up to dance lessons on that basis.

Thanks for the help, I get what you mean but I think in a way the question which i'm trying to answer is a bit ambiguous.
the question I have states this:

“Gypsy has a standard brochure/enrollment form. The brochure provides general information about Groovation Dance Studio, as well as a schedule of available classes and tuition fees, and additional information such as clothing and footwear requirements, and extra costs such as costumes and concert levies. Students fill in their name and contact details at the top of the form, and then they are required to tick each class they wish to attend. There is no requirement or space for a signature. At the bottom of the form is the statement:

“This form must be completed and returned to Groovation Dance Studios, and your payment received prior to commencement of your first class. This contract is subject to the Groovation Dance Studio standard terms and conditions available in the office of Groovation Dance Studio”.

Once Gypsy receives the completed forms and payment, she posts a package to students comprising a folder containing a message of thanks and welcome, a discount voucher for a local dance wear shop, and a laminated membership card. On the cover of the folder is a large sticker which contains the Groovation Dance Studio standard terms and conditions, including the following statement in bold 12pt type:

“Groovation Dance Studio shall not be liable for any injury, loss or damage suffered by dance students of Groovation Dance Studio, whether caused by the negligence of Groovation Dance Studio, its servant or agents”.

Gypsy decided to put on a dance concert to showcase the talents of her students. She wanted the concert to be something out of the ordinary, with the hope of attracting more custom. Gypsy picked out several students for solo roles in the concert, including Mary-Lou, a promising young dancer who took classes at Groovation Dance Studio.

Together, Gypsy and the students choreographed a spectacular dance routine. Mary-Lou was very ambitious and urged Gypsy to include difficult and amazing dance moves for Mary-Lou to perform. Hoping to achieve something really stunning, Gypsy agreed to Mary-Lou’s suggestions, but Gypsy was not in fact sufficiently experienced to teach Mary-Lou these moves properly. Unfortunately, during the concert performance Mary-Lou performed a spectacular back flip and landed heavily on her back, seriously damaging her spine. Mary-Lou required extensive surgery, numerous steel pins, and will need years of rehabilitation. Mary-Lou’s future career in dance is now ruined and she wants to sue Gypsy for loss of future earnings as a dancer, and for all of her medical expenses. Gypsy admits that she owes Mary-Lou a duty of care and that she has breached that duty, but she argues that her liability is either eliminated or at least reduced. Gypsy’s defence is based at least in part on the term in the Groovation Dance Studio standard terms and conditions stating that she accepts no responsibility for loss or injury.”


___


Well what I have so far is that firstly, the exclusion clause isn’t part of the contract and is ineffective as it was stated after the contract was entered into. Dillon v Baltic shipping.

So Gypsy is liable for negligence.

And then I was stuck as to whether Gypsy (dance teacher) would be considered a professional as it states, “Gypsy agreed to Mary-Lou’s suggestions, but Gypsy was not in fact sufficiently experienced to teach Mary-Lou these moves properly.” I was wondering whether saying that in the question would make Gypsy liable under the standard of care of professionals. This question doesn’t say anything about Gypsy professing to be trained, the main thing it said was that she specifically wasn’t trained for THAT spectacular move. I was unsure as to whether that would put her in the professional standard of care. Although in one of the prior questions it states, “Gypsy was a hip hop dancer, choreographer and dance teacher. For many years she had been teaching for other dance venues, but had a dream to branch out on her own. She wanted to take her skills to the less privileged outer suburbs”. Would using a professional standard of care be right here.

Oh and in our text we have a section dedicated to a standard of care and that criteria and a separate one for professionals. If dealing with a case concerning a professional malpractice do we only need to satisfy the professional criteria?

____

another quick question: unrelated the dance question

Ok, when you have negligent mis-statement in the torts of negligence and misrepresentation in vitiating factors (contract). Do you either pursue an action in either one or can you pursue an action in both?

The difference between them is that in vitiating factors you get recission and damages but in torts you can only get damages...

right?

I wasn't too sure.
 
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MoonlightSonata

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The Standard of Care for Professionals

There used to be a concept called the Bolam principle, which said that if a medical body adhered to the standard of care that was set out by the professional body, then they have satisfied their duty.

The High Court in Rogers v Whitaker (1992) rejected the Bolam principle (rightly in my opinion - it takes the standard out of the hands of the court).

However, as you're probably aware since this decision we've had a very stupid piece of legislation called the Civil Liability Act 2002 (NSW). Section 50 of the Act says that a person practicing in a profession is not liable if what they are doing is widely acceped in the profession, in Australia. It also gives the court the power to overrule this if it is "irrational" (we have yet to find out what this means). The fact that there are widely differing opinions about what is accepted in the profession doesn't matter - it doesn't have to be universal.

Now, effectively what this does is re-enstate the Bolam principle FOR EVERY PROFESSION. So, if you are answering the question with regard to only the common law, refer to Rogers v Whitaker, but if you have to discuss the effect of statute (which I would recommend mentioning even if you don't have to), then also note the effect of the Act.

[One note though that s5P of the Act says that it doesn't apply for warning of risk, so the authority behind the specific scenario of Rogers v Whitaker is in some sense still there.]


The Quote

"An exclusion clause in such a contract cannot protect the bailee if his/her actions are neither contemplated or permitted by the contract"

"Contemplation of the parties" has particular resonance in the concept of bailment, because there the issue arises whether, when there is a sub-bailment, if the bailor can sue the sub-bailee, or whether they have to sue the bailee who then in turn sues the sub-bailee (ie. the bailor is bound to the terms of the sub-bailment). The answer that the bailor can sue the sub-bailee if it was contemplated in the contract. (You would want to do this if for example the exclusion clause between the bailor and bailee was very restrictive, that is good, but the exclusion clause between the bailee and sub-bailee was bad)


The rules for construing exclusion clauses:

(1) Constued strictly against the party for which the benefit exists
(2) Not construed as relieving against liability for negligence unless expressly or by implication (and only by implication if there is no ground of liability except negligence
(3) Four corners rule - will not exclude liability for acts not authorised by the contract.

(Clearest authority to use is Thomas National Transport (Melbourne) v May & Baker (Australia) Pty Ltd).
 

Minai

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Good summary there Moonlight



thanks :)
 
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Ribbon

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natstar said:
Thanks heaps. So this tax is a policy decision yeah. IS there anywhere i could find out more info about this? Like any websites?
I'm not sure of any sites, all my info came from lectures and textbooks. lawbook.co.uk might have some stuff on it but from memory its subscriber only, and I can only get in because I have ANU students passwords. You could also try reading the precendental judgements on austlii - Sutherland shire council v heyman, 'crimmins' (I can't remember the actual name, we always just referred to it as crimmins) and note also that crimmins cites caledonian new colleries for some of the tests. There is a big 6 stage test in crimmins on the liability of statuatory authorities in cases of nonfeasense (nonfeasence is negligence through failure to act to prevent an accident, as opposed to misfeasence where the negligent act is doing whatever you did to cause the accident).

Actually, heres an idea: cut and paste from a summary I have (I didn't write this btw and I am not sure who did)

Statutory authorities
We look at the situations in which the existence of a statutory function / power / duty of a public body may give rise to a duty of care of that body. We are mainly interested in whether statutory duties can give rise to a positive duty to act to prevent harm occurring to certain persons. Contrast (1) negligent exercise of powers and (2) negligent failure to exercise powers…(positive duty to..?).

• A body is not under a common law duty to exercise its power where no statutory duty to; but once it exercises this power, must do so with reasonable care (ie owe a duty to those sufficiently likely to be affected by the exercise of the power, to exercise reas. care for their safety) Crimmins* p462-3.
• When does a statutory duty or power give rise to a positive duty to take reasonable steps to protect P? Generally, courts are cautious about imposing affirmative common law duty on public authorities. In what ways are public bodies and private individuals / companies different for the purposes of framing a duty of care enquiry?
• There are problems with courts reviewing decisions of public bodies to exercise or not exercise their powers. Contrast ‘policy’ decisions (not amenable to court scrutiny) and ‘operational’ decisions (courts can apply negligence analysis). The distinction is difficult. Generally, these factors arise at the ‘breach’ stage (see eg Romeo).
• NB see the test in *Crimmins p466-70.
• See *Barclay Oysters: did a duty of care arise from alleged failure to exercise statutory powers?
• See Part 5 of the CLA (limiting the liability of statutory authorities).
• Note that statute may confer immunity from tort liability, or indicate that the statutory duty is incompatible with a common law duty of care (eg the duty to investigate child abuse in Sullivan v Moody inconsistent with any possible duty to persons under investigation).

Misfeasance
Cite Crimmins as citing Caledonian New Colleries

Nonfeasance
Crimmins 6 part test p466

Policy & Operational distinction
(Sutherland shire council v heyman, crimmins)
Note: A government authority under no stat obligation to exercise a power has no duty to do so unless it does something to attract that duty, eg, assumption of responsibility, creation of danger, occupier’s liability. (Pyreneese Shire Council v Day p472)
 
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monzi

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An Exclusion Clause can become void if Misrepresentation present.

Like this assignment i have right now, the lady in the assignment signs the contract which contains an exclusion clause, when she asks the defendant what's that mean? he goes to her 'oh its nothing it only applies to second hand goods' clearly that was misrepresentation - Curtis vs. Drycleaning and Dying Co relating to a wedding dress and a non contractual document etc etc..
 

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