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Denial is a business graduate and running her own construction business. She has seen an advertisement in local newspaper a few weeks before specifying that

Denial is a business graduate and running her own construction business. She has seen an advertisement in local newspaper a few weeks before specifying that a big local equipment hiring business (Queen Treasure) offering the building equipment for hiring also claimed to offer $10,000 as compensation if any incident happened due to their equipment.

Denial decided to hire equipment (some ladders and planks to enable) from Queen Treasure based in Melbourne, for her workers to paint the exterior of one of the clients house. When Jam (her worker) collected the hired goods, Jams was asked to sign a hiring agreement. Jam immediately brought this concern into notice of Denial. Denial called Queen Treasure and asked why Jam must sign an agreement, the employee of Queen Treasure replied: - "It is just for insurance purposes".

Jam did not read the terms and conditions of the agreement, but signed it as requested by the employee of Queen Treasure.

Whilst Jam was using the equipment, one of the ladders collapses since the rope that prevents the ladder from collapsing was badly worn and was seriously injured, ladder was broken and walls of the house were damaged.

After this incident, Denial tried to sue the hiring firm for damages, her attention was drawn to a clause on the back of the printed hiring agreement signed by Jam as: -

"The owner of hired goods accepts no responsibility for personal injuries or damages suffered by persons using our equipment during the period of hire, irrespective of whether such injuries are caused by breach of contract, negligence or any other cause whatsoever".

Denial contacted you to seek your advice on following matters:

  1. Whether she can successfully sue Queen Treasure for damages. Advise Denial. Support your answer with precedents, legal principles, cases and legislation.

(5 Marks)

  1. Would your answer be different assuming the advertisement was mere puff under Contract Law and application of Consumer Law on advertisement? Support your answer with precedents, legal principles, cases and relevant legislation.

(5 Marks)

  1. Consider these circumstances further:
    1. If Jam was forced (by Queen Treasure) to sign the agreement;
    2. Jam was intoxicated while signing the agreement; and
    3. Jam was two months for from being adult while signing the agreement.

Discuss in detail legal value of the contract in these circumstances and the defenses available to her. Support your answers with reference to case law and relevant legislations. Also discuss the position of Jam in this event.

(5 Marks)

  1. Your answer must focus on Contract Law, Consumer Law, Tort, responsibilities and liabilities of Business, and any other relevant legislations.

(5 Marks)

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