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

Assignment Help:

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.

 Required:

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?


Related Discussions:- How to calculate capacity of the system

Contracts of guarantee, Contracts of Guarantee However a contract of g...

Contracts of Guarantee However a contract of guarantee or suretyship is such a contract through one person to answer that for the debt, such default or miscarriage of another.

Deferred debts - disclaimer of assets, Deferred Debts - Disclaimer of asset...

Deferred Debts - Disclaimer of assets: Deferred Debts: A debt owed to a member as member, i.e. an unpaid dividend, is a deferred debt paid only when ordinary debts have b

Domestic agency of necessity, Domestic Agency of Necessity However a m...

Domestic Agency of Necessity However a married woman that has been actually or constructively deserted through her husband has authority on common law to take necessities at c

Powers and duties - Company secretary, Powers and Duties:  The powers ...

Powers and Duties:  The powers and duties of the secretary depend on the size and nature of the company and the personal contractual arrangements that it makes with him. Howev

Three main categories of international humanitarian laws, There are three m...

There are three main categories of international humanitarian laws: 1) The Hague conventions 2) The Geneva conventions 3) The additional protocols

Effect of rescission, Effect Of Rescission: Where a contract of allotm...

Effect Of Rescission: Where a contract of allotment is rescinded, the former shareholder will be entitled to his money back (normally with interest) and to a refund of any exp

Define the non-state actors, Define the non-state actors Besides the e...

Define the non-state actors Besides the efforts of ILC in defining a link between the state responsibility and non-state actors, some UNSC resolutions have tried to define the

Rationale of centralized and decentralized bargaining, Question 1: i) ...

Question 1: i) What is the rationale of centralized and decentralized bargaining? ii) Give examples of benefits associated with centralized bargaining. iii) Give exam

Statutory interpretation, Words are imprecise. Interpretation of words and ...

Words are imprecise. Interpretation of words and the passages in which they are contained is a difficult task, but one nonetheless that is required when Courts are asked to apply t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd