BUSINESS AND CORPORATIONS LAW Individual Assignment Due Date: 18 August, 2016 (10:00 am) Instructions: Answer ALL questions. Word limit: 2000 words Referencing: Harvard style QUESTION 1: (10 Marks) Consider the following situations and indicate whether consideration is present and whether Jack has an enforceable agreement: a) Jane is going overseas and she offers to give her Lotus Super 7 sports car to Jack. The market value for this type of vehicle in good condition is around $25 000. Jack accepts. (2.5 MARKS) b) Jane offers to sell Jack her Lotus Super 7 sports car for $25 000. The market value for this type of vehicle in good condition is around $25 000. Jack accepts. (2.5 MARKS) c) Jane offers to sell Jack her Lotus Super 7 sports car for $2500. The market value for this type of vehicle in good condition is around $25 000. Jack accepts. (5 MARKS) QUESTION 2 – (10 MARKS) A shipbuilder had contracted to build a tanker for North Ocean Tankers. The contract was in US dollars and didn’t contain any provisions for currency fluctuations. Approximately halfway through construction of the ship, the United States devalued its currency by 10 per cent. As the shipbuilder stood to make a loss on the contract, it demanded that an extra US$3 million be paid or it would stop work. The buyer reluctantly agreed under protest to pay, as he already had a charter for the tanker and it was essential that it be delivered on time. The buyer didn’t commence action to recover the excess payment until some nine months after delivery. Will the buyer succeed in recovering the excess? Use this IRAC Method to write your answers of the above questions: The IRAC method provides a structure to answering legal problem questions. Before you use the IRAC method you need to assess the entire legal problem to discover where IRAC needs to be applied. Read the question carefully to determine: What broad area of law should be applied to the problem ¬- e.g. contract law, criminal law etc? What cause/s of action within the broad area of law is relevant to base the client's case upon -¬ e.g. breach of contract, misrepresentation etc? What elements of each course of actin eed to be proved or disproved? Once you have done this and identified the 'issues' that need resolution you apply IRAC to each of them. Sub issues may also arise and you can apply IRAC to these issues as well. To read further detail on this method UTS Law Guide to Written Communication IRAC stands for: • I - Identify the” ISSUES” • R - State the relevant “RULES” (legal authority) • A - Apply the rules to the facts of the case “APPLY” • C - The outcome of applying the law to the facts “CONCLUSION” Issues: • Identify the problem: what has gone wrong and for whom? • Name each Plaintiff and Defendant and briefly describe their individual issues. • Work out what area of law may govern the resolution of the problem. • Identify any conflicting or troublesome facts. Rules: • Set out the legal principles that will be used to address the problem. • Source legal principles from cases and legislation. Apply: • Explain in detail why the Plaintiff's claims are (or are not) justificed, based on the body of law pertaining to the case. • How will this law be used by each party to argue their case? • Use relevant precedent cases or legal principles to support your answer. • You may also choose to use Legislation when applicable. • There are often several Plaintiffs involved. Take the time to examine each case individually and analyze why their claims are (or are not) valid. Conclusion: • Stand back and play 'the judge'. • Choose the argument you think is the strongest and articulate what you believe to be the appropriate answer. • State who is liable for what and to what extent. • Consider how parties could have acted to better manage their risks in order to avoid this legal problem.

Read less