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Jack’s son Tim is hoping to start a new computer business. He asks his father if he would be willing to lend him $50,000 to help him start the business. In return, Tim promises to give his father a new computer. Jack accepts Tim’s offer. Tim buys his father a new computer but then Jack tells Tim that he has changed his mind and will not be lending him the promised money.

 

a)         What is the issue you need to consider? (1mark)

 

b)        What is (or are) the relevant legal rule (or rules) relating to this problem?

c)         What is (or are) the main case (or cases) related to this problem?

d)        Based on this information, if Tim sues Jack for breach of contract, will he       win in court? What is your answer – Yes? or No?  Explain your answer.

Problem 2         (6 marks)                   Topic 3

 

On Monday Brian enters a contract to sell Bonnie his computer for $3000. They have agreed to exchange the computer and the $3000 at 11.00 am on Friday. When they meet at the agreed time, Bonnie asks Brian if the computer will have iTunes among its software. There had been no discussion of iTunes when the original contract had been made. Brian tells Bonnie that the computer does include the iTunes program. When she takes the computer home she discovers that there is no iTunes on the computer. She sues Brian for breach of contract, claiming he had promised that iTunes was on the computer

a)         What is the issue you need to consider? (1mark)

b)        What is (or are) the relevant legal rule (or rules) relating to this problem

c)         What is (or are) the main case (or cases) related to this problem?

d)        Based on this information, if Bonnie sues Brian for breach of contract,           will she win in court? What is your answer – Yes? or No?  Explain your            answer.  

Problem 3         (6 marks)                   Topic 4

Bart contracts with Acme Transport Company (ATC) to transport his valuable packages from Sydney to Melbourne. The contract contains an exclusion clause excusing them of liability for any loss while in transit or storage. The normal practice is for all parcels to be collected and lodged at ATC’s depots where they are sorted and delivered. However, John, the carrier, is running late and arrives after the depot closed. He takes the packages to his home and parks his van in his front yard. A fire destroys the van and the packages. Bart sues for a breach of contract. Will he be successful?

a)         What is the issue you need to consider? (1mark)

b)        What is (or are) the relevant legal rule (or rules) relating to this problem?

            (1mark)

c)         What is (or are) the main case (or cases) related to this problem?

           d)        Based on this information, if Bart sues ATC for breach of contract will he       win in court? What is your answer – Yes? or No? Explain your answer. 

Problem 4         (6 marks)                   Topics 4 & 5

 

As they have done twice each year since 2005, Angela and her husband book a room at the Majestic Hotel for the weekend. They register at the reception desk then climb the stairs to their room on the 3rd Floor. After they unpack their bags, they notice a sign on the back of the door which reads: “All valuables must be taken to the reception desk where they will be placed in a security safe. No liability will be accepted by the hotel for any loss or damage involving guests’ property left in their room.” Due to the staff forgetting to close the door after cleaning the room, Angela’s very expensive gold watch is stolen. She now sues the Majestic Hotel for damages for the loss of her watch.

 

a)         What is the issue you need to consider? (1mark)

 

b)        What is (or are) the relevant legal rule (or rules) relating to this problem?

            (1mark)

 

c)         What is (or are) the main case (or cases) related to this problem?

            (1 mark)

 

d)        Based on this information, if Angela sues the Majestic for breach of     contract will she win in court? What is your answer – Yes? or No? Explain          your answer.  (3 marks)


Problem 5         (6 marks)                   Topic 5

 

Andy owns a valuable horse. He is going overseas for two months and enters into a contract with Doug who owns a farm not far away for the horse to live there in his absence. The only agreed terms are that Andy will pay $400 for the exclusive use of the farm’s two large paddocks while he goes overseas. Both understand that the horse will need nothing more than plenty of grass and water during this time. When Andy delivers the horse he discovers that Doug’s dams are completely empty and has to cancel his overseas trip because he has no time to find another farm where he could send his horse. Andy sues Doug for a breach of contract.

 

 

a)         What is the issue you need to consider? (1 mark)

 

b)        What is (or are) the relevant legal rule (or rules) relating to this problem?

            (1 mark)

 

c)         What is (or are) the main case (or cases) related to this problem?

            (1 mark)

 

d)        Based on this information, if Andy sues Doug for a breach of contract will     he win in court? What is your answer – Yes? or No?  Explain your answer.           (3 marks)

 

 

 

 

 

 

 

 

 

 

Legal Problems

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