Fundamentals of Business and Corporations Law_Tutorial_Question
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May 8, 2024
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Faculty of Business and Law
Curtin Law School
Fundamentals of Business and Corporations Law-
BLAW5016
Module 4 – Terms of Contract and Capacity of
Parties (Ch 4) TUTORIAL 4 – CONTRACT LAW - CASE STUDY 4
Chapter 4 – Terms of Contract and Capacity of Parties
Question 1
Thelma and Larry are holidaying on the Mornington Peninsula and decide to take a ride on
the new chairlift at Arthurs Seat. The last time they took the chairlift was some years ago just
before it was closed down after an accident. In the accident a number of people were injured
and a number of people had to be rescued. When Thelma and Larry purchased the tickets the attendant forgot to tell them that the
conditions of using the chairlift were printed on the ticket but he did get both of them to sign
the ticket. Thelma and Larry saw writing and a number on the ticket but did not pay any
attention to it, nor did they read it, assuming it was simply their entry ticket. On the last pylon
before alighting from the Chairlift there was an old notice with the terms and conditions of
travelling on the chairlift. This old notice used by the previous operators of the chairlift. The
notice was faded and partly obscured by a tree. As they were alighting from the chairlift Larry's foot got caught in the seat strap and he
tripped and fell. The chairlift was supposed to be stationary for 60 seconds to allow patrons
to move off but it was only stationary for a few seconds before it took off. In order to protect
his face Larry put out his arms and when he fell he broke his right arm and tore his achilles
tendon in the tangled seat strap. Larry now wishes to sue Chairlifts Pty Ltd (Chairlifts) the company operating the chairlift for
his injuries. Chairlifts argues that is it not liable because there was an exclusion clause on
the back of the ticket which said: "Patrons on the chairlift enter at their own risk. The owners
and operators of the chairlift accept no responsibility for injuries received by patrons
howsoever caused". Furthermore, the old notice used by the previous operators of the
chairlift contained the same exclusion clause. Required:
Advise Larry whether he can successfully sue Chairlift Pty Ltd for his injuries.
Company Law for Business BLAW2006
Semester 1, 2023
Copyright Curtin University
Page 1
Faculty of Business and Law
Curtin Law School
Question 2
Jo is a photographer and has come to Perth to take photos of the sunset coast. She wants to rent a house overlooking the ocean. She makes inquiries at Perth Holiday Villas who has agreed to rent her their villa. Before she signed the lease documents Jo asked the leasing officer of Perth Holiday Villas if she could smoke in the villa. The leasing officer told Jo that she did not know, but thought it would be alright if she keeps the windows open. Jo did not make any further inquiries of whether she would be allowed to smoke in the villa. A week later Jo signed the lease documents, which contained a clause which prohibited smoking in the villa.
Required:
Advise Perth Holiday Villas whether they can enforce the smoking clause with Jo.
Company Law for Business BLAW2006
Semester 1, 2023
Copyright Curtin University
Page 2
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