Question 3
The Unemployment Program of the Government of Guava Land hasseveral offices throughout the country, ten (10) to be specific. Atthese offices, all the administrative matters of the Program areadministered, inclusive of payments to suppliers, payroll andInformation Technology services. There are several assets andconfidential 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 numberof locations, which resulted in the loss of two million dollars’worth in items. The Police are currently undertaking aninvestigation to catch the culprits.
The Minister, who is responsible for the Program, has mandatedthe Program to procure security services for one year at eachlocation. After a highly competitive procurement process, BigTrouble Security Services secured the contract to provide securityservices at all the locations.
The Unemployment Program and Big Trouble Security Services meton several occasions to finalize the written contractualobligations. Finally, on March 31st 2019, they agreed on all theterms of the contract and both parties duly signed. One of theagreed terms is that “Big Trouble Security Services under nocircumstances will be held liable for any unforeseen acts committedby its officers during the provision of services to theUnemployment Program”
Raymond Tin Foot, a security officer from Big Trouble SecurityServices, was assigned to the Harlem Office for the last six monthsfor the 6 pm to 6 am shift. Raymond, who is also a resident of theHarlem area, invited several of his friends during his shift, tolime and have a cookout at nights as a means of passing the time.This involves the lighting of a fire as well as occasional drinkingof alcohol on the premises.
Big Trouble Security Services – Manager and Owner – Mr. Lazy, onone of his rear occasional visits to the Harlem Site, saw what wasgoing on at this office. He quietly told Raymond “to please keepeverything under control so that no one will know”. Mr. Lazy as percontractual obligations must visit the site every night to ensurethat the guards are performing their functions efficiently andeffectively. However, this has never been done, because Mr. Lazytreasure his sleep very much. Additionally, Mr. Lazy did not wantto take any affirmative action, because he feared that Raymondmight leave the job. Indeed, Big Trouble Security Services ishaving problems recruiting security guards in this area and assuch, if Raymond left the job there will be no available guard forthis location.
One night, while Raymond was cooking and consuming alcohol withhis friends, forgot to extinguish the fire. They all fell asleepand subsequently the Harlem Compound of the Unemployment Programwas destroyed.
The Unemployment Program intents to sue Big Trouble SecurityServices for breach of contract due to the negligence of theiremployee Mr. Raymond Tin Foot. However, Big Trouble SecurityServices is seeking to rely on the following agreed term of thecontract, which excludes them from liability, that is – “BigTrouble Security Services under no circumstances will be heldliable for any unforeseen acts committed by its officers during theprovision of services to the Unemployment Program”
Advise the Unemployment Program, whether or not Big TroubleSecurity Services can rely on the above-mentioned exclusion clausein the face of a fundamental breach of contract due to thedestruction of the compound.
