Business Law Subject

Question: Clear identification of the legal issue(s) in the question , statement of the relevant law.

Case Study

Sam was concerned about the heavy drinking habits of his favourite young nephew Nick. He wanted to discuss his concerns with Nick and invited him to lunch at Catalan, a very exclusive harbourside restaurant.

When Nick arrived at the restaurant, he noticed a sign which read: VALET PARKING $25. Since he was running late and didnt have time to look for a parking space, he decided to take advantage of the valet parking service. When he handed his car keys to the valet, Nick was given a numbered ticket and was told he would have to present this when he was ready for his car to be collected. In addition to the number, the ticket also contained several terms, including clause 4 which stated: Whilst all due care is taken, customers cars are parked at their risk.

During lunch, Sam told Nick he was concerned about his drinking and offered to pay Nick $1,000 if Nick abstained from alcohol for one month starting on 1 August. Nick drank only water during lunch because he had himself become concerned for his health. Only one week before his uncle's proposal, Nick had joined Alcoholics Anonymous ("AA"). As one of the conditions for AA membership, Nick had signed a document promising to use his best efforts to abstain from alcohol.

After lunch, Nick presented his parking ticket to the valet who collected the car. When the car was brought to the entrance of the restaurant, Nick noticed the left rear tail light had been smashed and the rear bumper bar had also been damaged. Nick questioned the valet about the damage, to which the valet replied: We just do our best mate.

Nick resisted the urge to stop at the pub for a drink on the way home from the restaurant and did not drink alcohol at all during the month of August. He admits that this was more out of concern for his health and the promise to the AA group than any thought of financial reward. However, he now wants to know the legal position with respect to any claim against his uncle for the $1,000 because it is going to cost him $5,000 to repair his car.

Nick seeks your advice in relation to the deal with his uncle and the damage to his car. Advise Nick. Your advice should be supported by reference to relevant case law.