Question
. In January 2021, Darcey approaches Bull Shark's Boats and Cruisers Pty Ltd (BSBC), which is a boat retailer located in Queensland. Darcey discusses his
. In January 2021, Darcey approaches Bull Shark's Boats and Cruisers Pty Ltd (BSBC), which is a boat retailer located in Queensland. Darcey discusses his requirements with Ray, the owner and general manager of BSBC. Ray recommends the 10 meter BlueStylin2020 Cruiser. As all the cabin cruisers are manufactured to order, BSBC does not have one in stock. Ray shows Darcey several pictures and diagrams of the 10-meter BlueStylin2020 Cruiser. Darcey is impressed by what he sees and is interested in proceeding with the sale. Ray hands Darcey a copy of the sale contract, which Darcey diligently reads and signs. It contains the following terms: 1. BSBC shall sell, and the Buyer shall buy, a 10-meter BlueStylin2020 Cruiser (the Cabin Cruiser). 2. In return for the sale described in Clause 1, the Buyer shall pay BSBC $500,000 (the Purchase Price). 3. The Buyer must pay a 10% deposit upon signing this contract and the balance of the Purchase Price upon collection of the Cabin Cruiser. ... 20.
The Buyer must collect the Cabin Cruiser from BSBC's moorings on 1 December 2021. Darcey pays the deposit upon signing. Darcey collects his Cabin Cruiser on 1 December and pays the balance of the purchase price. Darcey has named the Cabin Cruiser 'Darcey's Sea Escape' and he would like this name painted on the side of its hull as soon as possible. He immediately takes the Cabin Cruiser to Anne, who is a talented artist specializing in signwriting on boats. During their discussions, Anne completes her standard 'Signwriting Authority Form' so that it records the name, placement, font, and font size selected by Darcey, the '$1,000 price' payable by Darcey, and the fact that she will 'keep the boat at her mooring on the evening of 1 December in order to complete the signwriting'. Anne hands this completed form to Darcey. Darcey notices a couple of formal-looking preprinted provisions on the bottom of the front page of this document but does not pay much attention. Darcey puts the form in his pocket and pays $1,000 to Anne upon departure. Anne is busy with other work, so she engages Fergus, an independent contractor, to complete the signwriting. Fergus completes the signwriting. Darcey collects the Cabin Cruiser from Anne on 2 December. A few days later, Darcey discovers two problems with the Cabin Cruiser. Firstly, it is taking on water. An expert has conducted testing and has advised Darcey that this is due to the inadequacy of the waterproof coatings applied to the underside of the boat during manufacturing. The inadequacy is significant and renders the hull of the Cabin Cruiser permeable (not waterproof). Secondly, the onboard navigation computer is damaged. Fergus took the Cabin Cruiser on a nighttime fishing excursion on the evening of 1 December. On this brief trip, Fergus negligently knocked the navigational computer with his fishing gear causing extensive damage. Darcey reads over the 'Signwriting Authorisation Form' that he received earlier (above). He is surprised to discover that it contains a clause that reads: "Anne may engage third parties to provide the services from time to time. Neither Anne, nor her servants, agents nor independent contracts, are liable for any loss or damage caused to the Cabin Cruiser that is occasioned during the provision of the services regardless of the cause".
Advise Darcey. You are to assume that Anne is not vicariously liable for Fergus's actions.
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