Law

LAW172: Contract Law Trimester 3 2021ASSIGNMENT 2Deadline: 22 December 2021 (11.59pm AEDT) Word limit: 2,000Artie Rucco owns a restaurant called ‘Nuovo Vesuvio’ in Palm Beach, New South Wales. The restaurant’s kitchen requires a new stove. After extensive research Artie decides to purchase a 10 burner gas stove and convection oven from ‘Cookin’ Kitchens’, a specialist retail company in Sydney. The contract for purchase and installation of the appliances is signed by both parties on 10 January 2021 and includes a term for delivery and installation within two weeks.On 20 January 2021, an employee of Cookin’ Kitchens arrives at Nuovo Vesuvio to install the appliances. He presents Artie with a document which has ‘Cookin’ Kitchens Acknowledgement of Delivery and Installation’ printed in bold letters across the top of the page.Some instructions for general maintenance and use of the appliances are printed in a smaller font. Below the instructions, the following words are printed:Cookin’ Kitchens will not accept liability for damage caused by the installation of its gas appliances.The stove is installed by the Cookin’ Kitchens employee, but the installation is negligently performed and as a result, one week, one of the stove’s burners explodes. The explosion injures two of the kitchen staff and destroys a section of the kitchen.The accident means the Restaurant must be closed for several weeks so that repair work can be undertaken. Artie hires a building contractor and architect, Marcia Roy, to redesign the kitchen. Artie selects Marcia for the job because of her reputation for designing environmentally sustainable commercial premises. Artie explains to Marcia the importance he attaches to a ‘green’ approach to design and business. Artie advises Marcia that he plans to apply for a prestigious ‘Go-Green’ sustainability hospitality business award.On 1 February, Artie and Marcia sign a contract which includes the following term:Marcia Roy will use best endeavours to incorporate environmentally sustainable kitchen systems into the architectural design.The contract requires an initial payment of $7,000 on delivery of plans and blueprints. The plans and blueprints are delivered to Artie on 6 February.However, when Artie sees the blueprints the following day, he notices that Marcia has not included any green measures and the kitchen plans include no systems or designs that could be described as environmentally friendly. Artie refuses to pay the initial instalment fee and advises Marcia that, for the above reasons, the contract is hereby terminated. QUESTIONS (20 marks)1. Can Artie sue Cookin’ Kitchens for the negligent installation of the appliances? (You do not need to explain anything related to negligence law for the purposes of this question.)2. Would your answer be different if the exclusion clause had been included as a term of the contract signed by the parties on 10 January 2021?3. Under common law, is Artie entitled to terminate the contract with Marcia Roy on 7 February 2021?An additional 3 marks are available on a discretionary basis. A holistic view of the paper’s overall will be taken before a decision on the award of any of those discretionary marks is taken. That assessment will include consideration of the following elements:• the quality of written prose and overall presentation;• astuteness of arguments and/or points raised;• mitigation against errors in the earlier stages of evaluation that may have carried forward; and,• observance of the AGLC4 standard and requirements.