200184 Introduction to Business Law (Autumn 2015) § Attempt all Questions § Total Marks: 30 § Word Limit: 1,500 words (including references and footnotes) § Referencing Style: Harvard Style § Mode of Submission: Online via vUWS § Due Date: 20 April 2015 by 12 noon Q1 Angie and Jack are newly-married couple. Angie is an artist and Jack is a scientist. They used to live in Tweed Heads but Jack is offered a new research position in Sydney so they decide to move. Angie intends to sell one of her artworks before the move so she places an advertisement online along with a picture of her painting as follows: ‘The Lesson’, E. Phillips FOX Replica, $ 8,500 Email: [email protected]” On 11 March, Mark sends Angie the following email: I would like to buy the painting you’ve advertised. I am happy to pay you $5,500 for it. Later that day, Angie replies as follows: Unfortunately, the lowest price I can sell the painting for is $ 6,700. If you can arrange payment by 22 March, I will sell the painting to you for that amount. On 16 March, Angie’s cousin James asks whether he can buy the painting as a gift for his mother’s birthday. James doesn’t have enough money, but says if Angie sells the painting to him for $ 3,500, he will help Angie and Jack pack for their move to Sydney. Angie agrees to sell the paining to James on that basis. On 17 March, Angie checks her emails and finds an email from Mark that reads as follows: I have shown my wife the picture of your painting and she loves it. I would like to buy the painting for $ 6,700 for our wedding anniversary. How can I make the payment? Mark’s email has been in Angie’s email inbox since 15 March. On 20 March, when Angie goes back to her studio, she finds out that the painting is stolen because she forgets to lock the studio’s door on 12 March. QUESTIONS (14 marks): a) Is the email from Mark to Angie on 11 March constitute acceptance? Explain your answers. (2 marks) b) Only considering the communications between Angie and James, who is the offeror and who is the offeree? Explain your choice. (2 marks) c) With whom does Angie have a contract to sell the painting? When was the contract to sell the painting formed? Explain your answers. (6 marks) d) How does the fact that the painting is stolen affect the contract? Explain your answers. (4 marks) Q2. Angie and Jack sign a lease for a two bedroom apartment located in Sydney. They want to use a removal company to move large furniture from the unit where they live in Tweed Heads to the new apartment. After searching around online, Angie and Jack decide to use the removal service of RedCube Pty Ltd (‘RedCube’). They call RedCube and discuss with Vince, the Manager of RedCube, what they need for the move. The couple tells Vince that they need to move the following items: § Two bookshelves, § A fabric sofa bed, § A hardwood bedside table, and § Six cartons, each weighing 30 kg. Angie tells Vince that the hardwood bedside table is precious as it was given to them by her late grandmother as one of the wedding gifts. Vince promises her that all the furniture will be handled carefully and will arrive in Sydney without any damage. The couple also tell Vince that RedCube has to pick up the furniture from the old unit before 2:00 pm on 10 April as they need to return the keys to the landlord by that time. No access will be given to the old unit after 2:00 pm. Vince tells the couple that the furniture will be delivered on 15 April because RedCude uses each truck route for multiple deliveries so that the couple can have a cheaper rate. Following the phone call, Angie and Jack receive an agreement from Vince through email which sets out its terms. They sign a duplicate copy of the letter and return it to Vince with a deposit of $120. The relevant terms of the agreement are as follows: AGREEMENT between: Angie Fisher / Jack Fisher (hereafter ‘The Clients’) and RedCube Pty Ltd (hereafter ‘The Provider’) Date: 25 March 2015 Pickup Address: Unit 6, 3 Kirby St, Tweed Heads Delivery Address: Unit 2, Roma St, Sydney Pickup Date: 10 April 2015 Pickup Time: Before 2:00 pm (No access to the pickup address after 2:00 pm) Delivery Date: 15 April 2015 Items for Delivery: Items Quantity Notes Bookshelf 2 Fabric sofa bed 1 Hardwood bedside table 1 Carton 6 30 kg each The parties have agreed on the following arrangements: § The Provider shall, on the agreed pickup date, pick up the agreed items from the Pickup address, and deliver the agreed items to the Delivery Address. § The Provider is not liable for any damage caused to the agreed items due to poor packaging. § A deposit of $120 should be payable within seven (7) days of the date of this Agreement, such deposit to be accompanied by a copy of the Agreement signed by the Clients. § The balance of the service fee should be payable within seven (7) days after the delivery date. Things start to go wrong from the very beginning, on 10 April. First, there is a thunderstorm in the afternoon and the RedCube truck arrived 20 minutes late. All the furniture had been moved outside the unit when the truck arrived. Although the furniture was wrapped in plastic, the fabric sofa bed was damp. Secondly, RedCube refuses to collect one of the six cartons because it weighs 36 kg. When Angie and Jack lift that carton into Jack’s car, Angie hurts her back. Thirdly, when all the furniture is delivered to the new apartment on the 15 April, the couple finds out that there is a scratch on the top of the hardwood bedside table. In addition, when the couple open the cartons, they find out that one of Angie’s wooden sculptures inside the carton is broken. Angie and Jack are so upset that they call Vince and complain about the move. Vince explains that RedCude ran late because of the thunderstorm and RedCube’s workers are not allowed to lift any items which weigh more than 32 kg without extra equipment for the workers’ safety. Vince demands the payment of the balance due. Angie and Jack tell him that they do not intend to pay. Vince has threatened to commence legal proceedings to recover the outstanding amount of $1,080 if they do not pay. QUESTIONS (16 MARKS) a) Has RedCube breached the contract by failing to arrive at the pickup address before 2:00 pm? (2 marks) b) The hardwood bedside table (6 marks) i. Assume RedCube’s failed to deliver the hardwood bedside table in the original condition - would this constitute a breach of a condition or a breach of a warranty? Explain your answers. ii. Would Angie and Jack have been entitled to terminate the contract because of RedCube’s breach? Explain your answers. iii. What could Angie have included in the contract to cover this situation? Explain your answers. c) The 36 kg carton (4 marks) i. Has RedCube breached the contract by refusing to pick up the carton? Explain your answers. ii. What could RedCube have included in the contract to cover this situation? Explain your answers. d) The broken wooden sculpture (4 marks) If RedCube wants to protect itself against liability, what should it do? Explain your answers.