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BUS201-Business Law

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Question:

Brandon, a successful developer asked his friend Rees to lend him $ 100 000 for a development project that he was associated with. According to the agreement Brandon was to repay the money to Rees within 120 days at 15 per cent interest and in cash.  On 20 April 2012, at the conclusion of the 120 day period Brandon called Rees and said that he would be unable to pay the $ 100 000 as the development hadn’t sold as well as had been expected due to some sudden changes in the property market. Brandon also expressed to Reese his willingness to pay $ 90 000 by cheque in full settlement of the total debt.  Rees remained silence for a couple of minutes but subsequently accepted.  On 2 June 2012 Rees claimed the balance of $ 10 000, plus the interest. Brandon who was extremely upset argued that he should not have to pay any more because he had paid and he was protected by the law. According to Brandon, Rees was estopped from recovering the full amount. You have been asked to advise Brandon on this particular matter. Consider remedies and possible defences.

Hillary is someone who loves to party. One night she had been at a party and decided to go home at 11.00 p.m. She had been drinking heavily and could not walk properly. She decided to walk home and crossed the road without looking for traffic. Nicky is driving her car down the road, she does not see Hillary because she is looking at herself in the rear view mirror of her car and putting on some lipstick. She hits Hillary and injures her, breaking her two arms.  Advise what legal liabilities arise out of this situation. Cite case and statutory law authority where relevant.

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