Mlc101 Business Law For The Assessment Answer

Janie B was a celebrity host on Channel 7.   Janie had 1 year left on her contract with Channel 7 however signed a contract to join Channel 9 immediately to host a new show.  What remedies, if any can Channel 7 seek for Janie’s breach of contract?  

has not reached her before she made the acceptance.

Conclusion  

Meredith has to sell the horse to Mandy

Issue

Is the  contract voidable due to Sunshine Panels actions

Rule

There are certain contract vitiating factors and one of such factors is  duress. When a party applied duress to make a person get to the contract then the contract is voidable at the option of the weaker party.

Application

In this case undue force and duress gas been applied by Sunshine Panels actions on Jimmy to accept the contract and thus as per the above discussed rules jimmy will have the option of making the contract voidable.

Conclusion

Contract is voidable due to Sunshine Panels actions

Answer 4

Issue

Has the lease contract been frustrated and Olivia can therefore terminate the lease

Rule

Contract is held to be frustrated in situation where it is impossible to carry out the rights and obligations under the contract due to circumstances which arise after the formation and are not within the control of the parties to the contract.

Application

In this situation the circumstances which have arisen have come after the contractual obligation have been discharged and not prior to it and thus the contract is not frustrated.

Conclusion

The lease contract has not been frustrated and Olivia cannot therefore terminate the lease

Answer 5

Issue

Whether Jenney can claim the property totally

Rule

The court generally presumes that there is no intention in a agreement involving domestic relationships as stated in Balfour v Balfour [1919] 2 KB 571  

On the other hand as stated in Merritt v Merritt [1970] EWCA Civ 6 the presumption can be rebutted and intention will exists where parties have separated from each other.

Application

As this is domestic agreement between Jenny and dean the court will generally presumes that there is no intention in the agreement. However here the parties have separated from each other and thus the presumption can be rebutted and intention will be present.

Conclusion

Jenney can claim the property totally

Answer 6

Whether Hotlap can rely on the term excluding their liability

Rule

An exclusion clause can be used for the purpose of evading a liability. However there are certain rules which need to be met to validly incorporate the clause. One of such rule is that the clause has to be presented before the contract is formed. Olley v Marlborough Court [1949] 1KB 532

Application

In the given situation it can be stated that the liability clause has been presented to Paul after the contract was formed as the contract was formed when the ticket has been purchased and not when Paul was going into the car. Thus the clause is not valid

Conclusion

The clause is not added in a valid way

Answer 7

Whether Marcus can claim breach of collateral contract

Rule

The parole evidence rules limits the terms of the contract to what has been written

A collateral contract is the result of the consideration being provided by the party to get into the main contract.

Application

Here Marcus has only entered into the main contract to purchase the house because Taylor promised him two jet skis and surfboards. Here the consideration for two jet skis and surfboards is the main contract.

Conclusion

Marcus can claim breach of collateral contract

Set two

Answer 1

Issue

Whether sally has the obligation of paying Ripper Renovations Pty Ltd (RR)

Rule

Where the party has carried out substantial performance in relation to a contract they are entitled to receive compensation for the part of contract they have completed if they have not breached a condition of the contract

Application

In the given situation it can be stated that Ripper Renovations Pty Ltd (RR) has carried out their major obligations under the contract. Here the cost of repair is only $250. Thus the remaining $9750 needs to be paid.

Conclusion

The remaining $9750 needs to be paid.

Answer 2

Issue

What remedies, if any can Channel 7 seek for Janie’s breach of contract

Rule

There are various remedies in relation to a breach of contract. The mist relevant remedies to address the issue are of Injunction, specific performance and damages. Injunction means preventing a party to do an act, specific performance means asking a party to do an act and damages to compensate the party for losses.

Application

In the given situation Channel 7 can seek Injunction from preventing Janie to breach the contract and damages for compensation for the breach of contract

Conclusion

The above damages will be applicable

Answer 3

Issue

Whether Sally is liable to Mr Jones for Enid’s conduct

Rule

In the case of Chan v Zacharia (1984) 154 CLR 178 it has been stated by the court that the partners are jointly and severally liable for the acts and omissions of the other partners. They are the principal and the agent of the business

Application

In the given situation it has been provided that Enid and Sally are partners in a firm called Future Wealth. Enid has provided negligent advice to Mr Jones. As per the above discussed rules Sally will be liable for the actions of Enid.

Conclusion

Sally will be liable for the actions of Enid.

Answer 4

Issue

Has Cindy breached any duties under the Corporations Act 2001

Rule

Under section 191 of the CA it is the duty of the directors of the company that they have to disclose any personal interest they may have in the subject matter of a transaction to other directors

Application

Cindy has failed to disclose the info about her husband to the directors and thus he she has breached section 191

Conclusion

Section 191 is breached by Cindy

Answer 5

Issue

What remedies, if any can Channel 7 seek for Janie’s breach of contract

Rule

There are various remedies in relation to a breach of contract. The mist relevant remedies to address the issue are of Injunction, specific performance and damages. Injunction means preventing a party to do an act, specific performance means asking a party to do an act and damages to compensate the party for losses.

Application

In the given situation Channel 7 can seek Injunction from preventing Janie to breach the contract and damages for compensation for the breach of contract

Conclusion

The above damages will be applicable

Answer 6

Issue

Has The Age breached a condition that justified Deakin College’s termination of further performance of the contract?

Rule

The condition is the term of a contract upon when the parties to the contract rely on to get into the contract. They would not have formed the contract of the term was not there.

Application

In the given situation the college  would not have got into the contract with the Age Newspaper if the term that the advertisement will be present in page 3 was not there. As the term has been breached it is a condition.

Conclusion

The Age breached a condition that justified Deakin College’s termination of further performance of the contract

Answer 7

Issue

Whether Jayden can sue Pest Crop Sprayers for the loss

Rule

Duty of care is present when a person can be harmed due to the actions of another person foreseeably or the person has sufficient proximity to the injured person.

Application

Any reasonable person in the position of Pest Crop Sprayers can foresee where they had been warned to spray the pesticide carefully that if they do not do so than injury may be cased to other. Thus they have a duty of care to Jayden

Conclusion

Pest Crop Sprayers has as duty of care to Jayden

Part 2

CHAPTER 2 & 3 –CONTRACT and OFFER and ACCEPTANCE

An invitation of an offer is an statement having no legal significance and cannot be accepted. The invitation can only ask a person to make an offer a few examples of invitation to offer are advertisements and tenders. The provisions had been discussed in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] 1 QB 401

An offer is an expression or statement which is made to specific people , group or the world at large and have the intention of forming legal relationship once it has been accepted.

The general rule of acceptance is that the acceptance has to be communicated to the person who has made the offer. Without communication there is no acceptance.

Postal rule is an exemption to the general rule where it has been stated that as soon as a post for acceptance is posted it accounts to acceptance irrespective of actually reaching the offeror as stated in the case of Adams v Lindsell (1818) 1 B & Ald 681.

CHAPTER 4 - INTENTION

In relation to presumption regarding social, domestic and family agreements there is a presumption that there is no Intention of forming a legal obligation as per the case of Balfour v Balfour [1919] 2 KB 571

In relation to presumption regarding business agreements there is a presumption that there is Intention of forming a legal obligation as per the case of Esso Petroleum v Commissioners of Customs & Excise [1976] 1 WLR 1

CHAPTER 5 – CONSIDERATION

Consideration is a promise on which a contract is based. Without a consideration there is no contract. Past consideration rule states that a past consideration is not a valid consideration as per the case of Anderson v Glass (1868) 5WWB & AB (L) 152

The exception to the past consideration rule is that when the act or omission has been made as per the request of the promisor then the consideration is valid as per Pao On v Lau Yiu Long [1980] AC 614

No, performing an existing obligation is not a good consideration as per the case of Collins v Godefroy (1831) 1 B & Ad 950

The practical benefit test states that when a person has been able to avoid a loss or conferred a benefit because of the act or omission it would be a valid consideration even if it is an existing obligation as per Hartley v Ponsonby (1857) 7 E & B 872

CAPACITY

A minion is bound by contracts when the he has entered into a contract for ‘necessaries or beneficial contract of service.

Contract for necessaries is a contract which minor entrees into for purchase of necessaries like clothing and fooding as per Bojczuk v Gregorcewicz [1961] SASR 128 

Beneficial contract of service is a contract which minor entres into for taking beneficial services such as coaching as per the case of -  Mercantile Union Guarantee Corp Ltd v Ball [1937] 2 KB 498

A mentally incapacitated person can get into a contract when he is mentally sound but not when he is mentally incapacitated.

CONSENT

A common mistake is a mistake which is made by both parties as per McRae v Commonwealth Disposals Commission  (1951) 84 CLR 377

Duress is a process which is used to obtain consent by force as per Scolio PL v Cote (1992) 6 WAR 475. Economic duress is a process where economic pressure is provided to get consent as per ndo Management PL v Westpac Banking Corp (1988) 19 NSWLR 40

Undue influence takes place when a person is in a special relation and get into a contract religious adviser and devotee – Allcard v Skinner (1887) 36 Ch D 145;

LEGALITY

Restraint of trade clause is a clause which is used to prevent an ex employee to carry out similar trade. It is used to prevent a person who leaves employment from opening similar business as per Petrofina (Great Britain) Ltd v Martin [1966] 1 CH 146 & Nordenfelt v Maxim Nordenfelt Guns & Ammunition Co Ltd [1894] AC 535

CONTENTS & INTERPRETATION OF THE CONTRACT 

Parole evidence rules provides that as soon as a written contract is made any term not discussed is not a part of the contract. Collateral contract is a contract which is the consideration for the manin contract .  The rule is that it is binding legally as per- Van Den Esschert v Chappell [1960] WAR 114

A condition is a term which is relied to get into a contract by the parties and is very important as per Associated Newspapers Ltd v Bancks (1951) 83 CLR 322

A warranty is a term which is not as important as warranty and is not relied to get into the contract as per Bettni v Gye (1876) 1 QBD 183

Exclusion clause is a clause which is used to exclude the liability of a party

It can be incorporate by signature, notice or customs as per Alameddine v Glenworth Valley Horse Riding Pty Ltd [2015] NSWCA 219

No it is not differ t from online contract as per er v Kalanick No 15 Civ. 9796, 2016.  

OPERATION OF THE CONTRACT

Privity of contract means only parties to the contract have rights to enforce it. The exception is that when a third party is beneficiary of the contract as per Tweedle v Atkinson (1861) 1 B & S 393

TERMINATION AND BREACH OF CONTRACT

Anticipatory breach means a breach which can be anticipated. The innocent party can discharge the contract.

Yes contract can be terminated for breach of condition. No contract cannot be terminated for warranties.

Frustration takes place when the contract is not possible to be carried out because of situation beyond the parties control. Elements are that the situation has to be beyond parties control as per Taylor v Caldwell (1863) 3 B & S 826; 122 ER 309. No it is not frustrated merely because it is more expensive, harder or inconvenient to perform as per Meriton Apartments PL v McLaurin & Tait (Developments) PL (1976) 133 CLR 671.

REMEDIES 

Remedies are provided to compensate the innocent party as per Tabcorp Holdings Ltd v Bowen Investments PL(2009) 236 CLR 272

The test are that the damages has to be foreseeable and damages must be contemplated

Specific performance asks a person to do a specific work  as per JC Williamson Ltd v Lukey & Mulholland (1931) 45 CLR 282. Injunction ask a person to do a specific work as per - Page One Records Ltd v Britton [1968] 1 WLR 157

CHAPTER 14 – LAW OF TORT

In case of a pure economic loss there is no duty of care as per Perre v Apand Pty Ltd (1999) 198 CLR 180

The defence takes place when the party is himself or herself negligent as per Alzawy v Coptic Orthodox Church Diocese of Sydney, St Mary and St Merkorious Church(No 2) [2016] NSWSC 1123

Vicarious liability means the liability of the principal for actions of the agent as per Hollis v Vabu PL (2001) 207 CLR 21

PARTNERSHIPS

A partnership is a business which is carried out in common for motive of profit earning as per The retiring partner has the liability to clear all debts  as serve notice as per Hamerhaven Pty Ltd v Ogge [1996]2 VR 488 and section 30.

Yes, the partner is liable as per Chan v Zacharia (1984) 154 CLR 178.

CORPORATIONS LAW

Section  180 duty of diligence and care

Section 181 duty of good faith and proper purpose and best interest

Section 182 duty of not misusing position

Section 183 duty of not misusing information

Section 184 reckless breach of above sections

Examples ASIC v Sino Oil and Gas Limited