How to calculate capacity of the system, Business Law and Ethics

David wants to open a restaurant in Melbourne. He engages Robert Boyd Pty Ltd, an architectural firm, to design the restaurant interior and exterior including the layout and position of the tables and chairs. Under the contract, Robert Boyd Pty Ltd will receive $25,000 for the services and Robert Boyd Pty Ltd will be responsible for all aspects of the interior and exterior design, including the seating capacity and obtaining permits from the local Council. David explains to Robert Boyd Pty Ltd's manager, Andrew, that, in order to be profitable, the restaurant must seat at least 100 customers.

Andrew measures the floor-space of the restaurant for the purposes of determining the seating plan.  Andrew also measures the size of the footpath space outside the restaurant, as David wants some outside street-side tables in order to serve more customers and to present a good image to people who pass by.

Andrew selects a set of beautiful Italian-design table and chairs for use in the restaurant and shows David the design in a photograph.  David is very impressed with the set and asks Andrew how many customers the restaurant will seat if these tables and chairs are used. Andrew assures David that, including both inside and outside space, the restaurant will seat a total of 120 customers with the Italian-design tables and chairs. David, relying on Andrew's figure, agrees to the purchase of the Italian tables and chairs and to the rest of the design of the restaurant. The tables and chairs will cost David a total of $50,000.

When the restaurant is completed and ready for opening, David finds that the restaurant only seats 80 customers and so will lose substantial profits.  When he informs Andrew of this, Andrew realises that the tables he ordered are slightly larger than standard-size restaurant tables, a fact he failed to check before ordering them.  In addition, an inspector from the local Council informs David that the tables on the outside footpath must be removed as the Council prohibits street-side dining, a fact Andrew could have discovered by ringing the Council but he failed to do so.


What rights, if any, does David have against Robert Boyd Pty Ltd under the tort of negligent mis statement in relation to Andrew's assurance relating to the seating capacity of the restaurant?

Posted Date: 2/18/2013 6:45:16 AM | Location : United States

Related Discussions:- How to calculate capacity of the system, Assignment Help, Ask Question on How to calculate capacity of the system, Get Answer, Expert's Help, How to calculate capacity of the system Discussions

Write discussion on How to calculate capacity of the system
Your posts are moderated
Related Questions
Q. What do you mean by Electrolysis? In electro refining, the impure metal is taken as the anode and a strip of pure metal coated with a thin layer of graphite is made .the cat

Types of Capital: A company's capital at any given moment may consist of: a)      NOMINAL OR AUTHORISED CAPITAL This is the capital that is stated in the memorandum of a

Powers of the Attorney General Whereas under sec 26(3) the Attorney General is empowered for as; Undertake and Institute criminal proceedings against any person b

Case Law Relating To Dividends: The above provisions of Table A supplement the following common law rules: 1)      Losses in previous years need not be provided for. Furthe

Question 1: Arbitration, a form of alternative dispute resolution, is a legal method for the resolution of disputes outside the courts, where the parties to a dispute refer it

Advantages of Stare Decisis - Aptitude for growth However process of 'distinguishing' cases facilitates the growth of detailed legal principles to deal by different factua

QUESTION 1 One of the main ingredients of a system of collective bargaining is the right to join and participate in the activities of a trade union. What is the extent of this

Why International law is very different from domestic law International law is very different from domestic law because in domestic disputes there are Courts to adjudicate upon

How state succession deals with debts and loans The issue relating to state succession deals with debts and loans. When a new state comes into existence, the question arises as

QUESTION 1 Arbitration has proved itself to be a valuable scheme in alternative dispute resolution of conflicts. Discuss the advantages and disadvantages of Arbitration as a su