Contract Law: The Caddy Shack Restaurant - Essay Example

Contract work Essay Word Count: 1236 114831 Affiliation: The legal structure monitors, guides, regulates, and controls different activities in the business sector. Specifically, business-related contracts are informed by legal provisions, which oversee adherence to the terms and conditions outlined in such contracts1. The Caddy Shack restaurant, just like any other business, is subject to the laws, rules, and regulations that apply to its sector or industry of operation. On the same note, the contracts made between the restaurant and its clients are subject to the applicable legal framework. The Caddy Shack restaurant has a unique selling point; skating waiters and waitresses. However, the restaurant is concerned about the underlying liabilities in the event that clients collide with the skating waiters and waitresses. Another point of concern regards loss of client property whilst at the restaurant’s premises. Following these two concerns, two exclusion clauses could be drafted for the purpose of limiting or excluding altogether the restaurant’s liability under the two aforementioned circumstances. It is fundamental to ensure that the restaurant’s business aspect is not adversely affected by the move. The Caddy Shack restaurant enters into business-client contracts with its clients. It is in the best interest of the restaurant to maintain functional relations with its clientele, even as it strives to reduce potential liabilities under the two circumstances of concern. The exclusion clauses that Caddy Shack restaurant needs will ultimately impose restrictions to its clients. It is also important to highlight that the move is likely to be seen as one that favours Caddy Shack’s business welfare, while reducing its potential liability obligations to the clients. In this respect, these two issues must be provided for and balanced in the drafted exclusion clauses. First exclusion clause: Caddy Shack will not be held liable for any losses or injuries that arise as a result of violation of the rules and regulations within the Caddy Shack restaurant’s premises. Clients are urged and reminded to strictly use the designated client sidewalks to avoid collision with the roller skating waiters and waitresses. The system is clearly marked to ensure that both clients and staff strictly remain in their respective right areas. Eventualities emerging from failure to abide to the set rules and regulations, and the skating system requirements shall not hold Caddy Shack responsible. Moreover, Caddy Shack shall not take responsibility for ignorance and/or negligence arising from the client’s side. Second exclusion clause: While Caddy Shack takes necessary measures to ensure safety of clients and their property within the restaurant’s premises, Caddy Shack shall be liable for any lost or stolen client property whilst at the venue. Clients are strictly required to take care of their luggage and properties. Designated safe storage points will be provided to clients for the purpose of enhancing strict adherence to this requirement. This clause applies to all clients; booking made online and over the phone, as well those who just turn up hoping to get a table. The drafting and implementation of the above two exclusion clauses is subject to operation complexities2 between Caddy Shack and its clientele. However, considering the underlying issues and concerns is critical to the restaurant’s business aspect. While the restaurant may make massive profits from its business, the same profits could be used to meet liability obligations if the necessary steps and course of action are not taken. This factor justifies Caddy Shack’s move, amid its need to establish close relations with its clientele and consequently offer satisfactory services to the clients. Drafting of the exclusion clauses is designed to deal with the risks at hand. The unique selling point that Caddy Shack has adopted possibly poses critical dangers to the customers. In this respect, the restaurant has implemented a system that designates areas for the public and for the staff. In this case, incorporating the exclusion clause in the Caddy Shack-client contract works to strictly enforce the rules on the ground. Moreover, ignorance and negligence from the clients’ side whilst at the restaurant’s premises would not hold Caddy Shack liable for any emerging losses. Contracts between Caddy Shack and its clients are subject to the regulation of the legal framework. Exemption /limitation clauses should be consistent with the relevant legislations in order to enhance their applicability, enforcement, and operations3. In order to have the exclusion clauses incorporated in the contracts between Caddy Shack and its clients, a number of notable pitfalls have to be avoided. One of the most critical pitfalls to be avoided relates to the use of language. The language and contents used should exhibit high clarity and unambiguous aspects to minimize the likelihood of conflicting interpretation of the exclusion clauses, which could consequently result in legal battles between contracting parties4 The commercial concerns that are of critical interest to Caddy Shack have to be considered. Being a business enterprise, Caddy Shack has to identify the sort of losses that significantly influence its business aspect. Losses to cover or not to cover are determined by the commercial aspect of the business, relative to the drafting and implementation of the exclusion clauses5. Losses to exclude should be consistent with the firm’s commercial interests, so that its welfare and that of its clients is not jeopardized by the process. Fraud, negligently caused death or personal injury constitutes liabilities that cannot be excluded6. Exclusion clauses that provide for the exclusion of the aforementioned liabilities are highly likely to be void. Over and above this, insurance-based complications relative to the drafting and implementation of exclusion clauses should be checked. The incorporation of the exclusion clauses into the contracts between Caddy Shack and its clients should be consistent with the provisions of insurable and uninsurable losses, as well as the insurance arrangements observed by Caddy Shack. Most importantly, subcontracts should reflect any limitation provisions7. Exclusion clauses are subject to regulatory legislations that oversee their use to ensure that neither party to a contract abuses them or uses them for personalized benefits. The Unfair Contract Terms Act (UCTA) 1977 primarily deals with exclusion clauses, and it is complemented by the Unfair Terms in Consumer Contracts Regulations 19998. The enforceability of the two drafted exclusion clauses is influenced by the aforementioned legislations. These legislations monitor, regulate, and control contracting activities to ensure fairness and adherence to contract laws. While UCTA works to ensure that a party or parties to a contract do not avoid contract-based liability, it does not account for the unfair aspect of a contract. The fair-unfair aspect of a contract, especially in consumer contracts, is provided for by the Unfair Terms in Consumer Contracts Regulations 19999. The incorporation of the exclusion clauses into the contracts between Caddy Shack and its clients must comply with the above legislations among others. Essentially, Caddy Shack cannot make exclusions for negligence on its side that results in a client’s personal injury or death. (Word Count: 1236) References B. Blum, Examples & Explanations: Contracts (4th edit Aspen Publishers Online, London 2007). Britvic Soft Drinks Ltd v Messer UK Ltd [2002] EWCA Civ 548. C. Moon, et al., “Business Ethics” (2001) 119–132. GB Gas Holdings (Centrica) v Accenture [2010] EWCA Civ 912 (CA). J. Morgan, et al., Business Law (BVT Publishing Company, London 2010). M. Jacqueline, The English Legal System (4th edit Hodder Arnold, London 2005). P. Richard, Law of Contract (7th edit Pearson Longman, London 2006). Salvage Association v. CAP Financial Services [1995] F.S.R. 654. W. Agnew, A Treatise on the Statute of Frauds (BiblioLife, London 2010). Read More