You are the Managing Director of SH Ltd, a chemical manufacturer. Following expansion of SH Ltd's business, you have

signed a five-year lease for additional premises.

During the negotiations for the lease of the additional premises, the lessor promised that SH Ltd could also use a number

of outbuildings which are on the same site. This was a verbal agreement and was not part of the five-year lease.

A term of the five-year lease states that the leaseholder must insure the additional premises however, SH Ltd has not

complied with this term.

SH Ltd uses the outbuildings to mix chemicals. Whilst mixing the chemicals in the outbuildings, an explosion occurred that

resulted in an injury to an employee of SH Ltd, as well as a leakage of toxic fumes.

On investigation it was discovered that the explosion occurred as a result of the wrong ingredients being used in the

chemical mixing process.

(a) Explain, with justification, whether the five-year lease for the additional premises is legally valid.

(b) Explain, with justification, whether SH Ltd has a right to use the outbuildings. Refer to one relevant case in

support of your explanation.

(c) Identify, with justification, two possible torts SH Ltd may have committed in relation to the explosion. Refer to

one relevant case in support of your identification.

(d) Outline how SH Ltd's duty to the injured employee arises.