There are two problem solving questions with each case having their own question(s).
Answer both problem questions.
Use of the IRAC system of case analysis is strongly recommended.
1. Contract Law
Maximus Productions are staging a new version of Beauty & the Beast. Two weeks before opening night the lead actor John receives and more lucrative offer and tells Maximus Productions that he will not be fulfilling his contract. John has received $2,000.00 in advance of his first two weeks performance and $3,000.00 for rehearsal time.
One week before opening night, Suzanne who plays Belle has a car accident and is hospitalised with two broken legs, she will not be able to perform for at least 3 months but demands that Maximus Productions pay her the full amount of her contract as the accident was not her fault. Suzanne has also received $2,000.00 in advance of her first two weeks performance and $3,000.00 for rehearsal time. The contract stated that she would receive a further $1,000.00 per week for the duration of the show.
Due to the loss of both lead actors Maximus Productions advises the State Theatre that it intends to cancel the show and its booking of the theatre as a result would not be able to pay the agreed rent ($10,000 per month) for the next 4 months, the original duration of the show. The State Theatre advises that it had not accepted other booking because of entering a contract with Maximus Productions.
Advise all parties as to their rights under Contract Law. Advise potential remedies in all cases.
2. Tort Law (Negligence)
Cobargo Go Karts
Cobargo Go Karts have been trading for over 10 years and operates in a small regional town in NSW. There are very few attractions and activities for the local community, but one thing is certainly popular, it is the Cobargo Go Karts. They operate both 125cc and 250cc Go Karts in an open track which is basically a converted former paddock. The track might best be described as made from bitumen (the same type of surface used on roads). There is evidence of lots of bumps and repairs of the surface.
There is full time counter staff of between 1 to 3 persons, and 8-10 persons who supervise and control the running of the go kart races, depending on the time and day of the week. Most of the track supervisors who manage races are young teenagers themselves and receive very little (sometimes no) induction training. There are no Operating or Safety Procedures or policies in place, and while the go karts are regularly serviced (to remain functional) very little else is attended too, especially the track and maintenance of the piles of rubber tyres used as barriers on the edge of the track.
The track is especially popular on weekends and the local high school even takes students to the track once a week on a Tuesday as part of sport. The operators of the track recently spent over $30,000 on an electronic device system, which times, and displays the results of each race on a large LED display board. This adds to the competitive nature of participants and most users try to either beat the ‘best time’ of the track for the week or beat they’re our ‘personal best-time).
Late last Saturday afternoon, during one of the events, Mary O’Connor, a girl aged 15 years suffered a terrible injury. Mary had very long hair which was of a length which reached half-way down her back. While she was wearing a helmet (supplied to each rider), but her hair was not secured sufficiently within the helmet. During one of the races, her hair became loose from under the helmet and flowed freely out the back for at least one full lap of the course. Then, there was a pile up of five go karts and Mary’s go kart was caught amongst it. Her long hair somehow got caught in the motor mechanisms of one of the Go Karts and as a result, large portions of Mary’s hair was ripped from her head and severe damage, requiring surgery occurred.
Mary was rushed to hospital and hospitalized for over a week, suffering damage to her scalp which include permanent scaring. Moreover, she was traumatized over the incident and is requiring ongoing psychological counselling.
Mary’s parents are considering suing the owners and operators of the Cobargo Go Kart track for one-million dollars, for pain, loss, and suffering, including medical expenses and have come to you for advice.
On closer review of the operation of the go kart track, it was found that approval to operate as a Go Kart track had never been granted Council Approval by Cobargo Local Council. Moreover, this is not the first instance where users of the track have been injured, especially from collisions and where drivers have run off the track and heavily hit the barrier walls. Although no records of injury or incidents have been kept, it has been suggested by users of the go kart track that they know of at least six other incidents resulting in injury and hospitalization.
Regarding a possible claim for negligence, advise Mary’s parents of her legal position to seek remedy. Fully explain each element of a claim for negligence relevant in this case.