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HI6027 Business And Corporate Law 2

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Questions:

Week 1

Explain the distinction between Exclusive Powers, Concurrent Powers and Residual Powers, which are outlined in the Australian Constitution. Give an example of each power.

Week 2

You are in the train station waiting for your train to arrive. You see a vending machine from where you can buy snacks and chips for $3.50. Posted on the machine is a sign saying: “Property of XYZ Vendsolutions Pty Ltd”. You insert the coins required into the machine and out comes a packet of chips. However, when you open the packet of chips, you find bits of plastic inside and you don’t want to eat the chips. You want your money back.

Required:

With reference to the essential elements for the formation of a contract, explain:

  1. a)  Did you enter into a contract in this scenario?
  2. b)  If your answer is yes, with whom did you enter a contract?

Week 3

What are the common law rules regarding contracts entered into by infants, and when are such contracts valid, voidable or void?

Week 4

Explain the operation of the contra proferentem rule. Is such a rule defensible in today’s business environment?

Week 5

In September, Amina hired Bryan as a delivery man. Bryan was to commence work on 1 November. On 1 October, Amina wrote to Bryan telling him that, despite their agreement, economic circumstances were such that she no longer required his services. Can Bryan sue Amina? Explain your answers in light of the principles learned on breach of contract.

 

Answers:

Week 1

The major three sections amongst which the Australian Constitutional powers are divided include the Exclusive powers, Concurrent powers as well as the Residual powers. Exclusive powers include the powers held by the Commonwealth in order to construct a legislation that has to be regulated by all the states and the territories as well. No state has such power to do so in respect with a certain areas. An instance of Exclusive powers held by Commonwealth are laws being made relating to tax imports. Even the law relating to the declaration of war or as such is also included under the power of the Commonwealth. The Concurrent Powers include the powers that are held by both the state as well as the Commonwealth in order to govern the citizens in an apt manner in certain areas of a nation, these areas include the aspects related to family laws, specifically the ones related to marriage and divorces. Another kind of power that certain section keeps a check upon is the Residual Power, which is the one managed by the federation of the colonies. These powers cannot be transferred to the Commonwealth or state for that matter and regulated by the government itself. The examples of the areas managed by the federation are the education as well as the criminal laws for that matter. All of these powers when contributively when work together are able to manage the nation’s working. Co-operation on every level as well as on each section is something that has to coordinate with each other in order to govern the citizen and the nation (Australian Constitution Center, 2020).

 

Week 2

1: 

Issue: In this case, the primary issue at hand is, whether the customer entered the contract?

Rule: As per the contract law of Australia, when individuals or the parties fulfil all the obligations or elements of a contract amongst each other, including the Offer, Acceptance, Conditions as well as the Consideration of fulfilling the conditions, then the parties are considered to enter into a valid contract. 

Application: The contract in this case was made amongst the customer as well as the XYZ Vendsolutions Pty Ltd. Once the customer inserted the coins in order to obtain the product of his choice, he entered into the contract of getting the products from the vending machine owned by the XYZ Vendsolutions Pty Ltd. Apart from this another contract was breached on the moment when the manufacturer provided the consumer or the customer with faulty product or the product with not the best quality as expected by the customer. When the customer purchased the product or the bag of chips from the vending machine, at that particular moment, he entered into two contracts, one was with the company who owned the vending machine, while one was with the manufacturer when the product provided was from a particular brand. The first contract on both the ends was fully completed on both ends, hence, XYZ Vendsolutions Pty Ltd cannot be sued for any breach on their part as all the elements of the contract were fulfilled. While on the other hand, the company providing the manufactured product was the one, where almost all the elements of a contract were fulfilled but, one condition which was to provide the best quality goods to the customer was breached. This refers to the breach of the contract as well. As the other party did not complete the condition they were supposed to in order to complete the contract.

Conclusion: Hence, the manufacturer here can be sued for the breach in this case, in spite of the fact that all the other elements of the contract were fulfilled on both ends as consideration was provided in full by the customer. In case as such claim can be made against the manufacturer for this breach by the consumer. 

 

2:

Issue: The issue here is that amongst what parties the contract was entered into or what parties were involved in the contract?

Rule: The Contract Law states that the party which offers or proposes to carry out an activity such as providing products or services for that matter to another party, and the other accepts to the same through certain action as in implied or through proper verbal communication, then those parties are considered to be the parties amongst which contract is being made.   

Application: In the above case, two contracts were made, fulfilling almost all the elements of a contract. First contract was amongst the owner of the vending machine and the consumer, while the second one was amongst the consumer and the manufacturer, where the breach was made on part of the manufacturer as they did not fulfil the condition of providing the best quality product for which the consumer paid.

Conclusion: Hence, in this case, the customer entered into two contracts, one was with the vending machine owner for providing the service as well as another with the manufacturer where the product of good quality was to be delivered.   

 

Week 3:

In any country where the Common law exists, any contract made with the minor, now if it is an infant or a child who is below the age of 18 years it does not matter much, the contract made will be a voidable one. In case of an infant, it will be most probably a void ab initio contract while, in case of a child who is not an adult or below 18 years of age, will be a voidable contract. But under a few cases, there are exceptions to this law as well, as stated in the case of Nash v Inman [1908] 2 KB 1, a child can enter into a contract with another person for the essential items (Austen-Baker & Hunter, 2020). In this scenario, since, essential items are necessary for the survival of humans, it will become a valid contract if made between a child and another individual. Another aspect that is considered an exception in this case is that, the contract related to the employment especially in the case where the employment is in no manner unfair or oppressive. These are just the exceptions where the contracts with the child are in no manner considered a void ab initio process. Apart from this, all other contracts with the child under the age of 18 are considered voidable (Routledge, 2020).

 

Week 4

This particular guideline of contra proferentem is particularly a real guideline that expressly focuses upon the route that if there is a stipulation that is unsure in nature, it should be by one way or another or another or the other deciphered in such a manner, that it is against the supposed interests of the social event which began the requesting to introduce similarly as referenced a particular condition into the comprehension. This particular rule of contra proferentem is the one that truly controls the understanding's genuine comprehension and it is so usually applied in the circumstance when a particular understanding is tried in the court (Alden et al., 2012).

In the propelled perspective or the bleeding edge habits by which understandings are dealt with, these understandings which are gotten understanding can end up being very marvelous isolated due to the extended strategies and the conditions being referred to. Trades which last longer than the certified time term of the understanding itself makes it hard to keep or taking everything into account. Each social event that is incorporated wishes to work everything as indicated by the prosperity of their own and besides endeavours to make it for the best of their bit of leeway, which can't be possible or might be even amazingly difficult to coordinate. Social events drew in with the said understanding in the bleeding edge business culture, are in a couple or the other way are constantly paying unique brain to their own prosperity and in a couple or the other way will wish to have the legitimate conditions similarly as language to be as such in the benevolence of the get-together itself. This can under explicit conditions lead to dim or obscure language being passed on among the get-togethers, which can provoke disarrays and social events not interpreting the understanding the way in which it should be from now on making issues among each other instead of genuine settling the issues. This is where the standard of contra proferentem comes into force, and assists with the issues as such being settled among the parties (Lexology, 2020).  

Week 5:

Issue: In this case, the issue that here needs to be tended to is whether Bryan can sue Amina for the breach on her part of the employment contract?  

Rule: Australian Contract Law specifically talks about the breach of a contract and the remedies for the same on the part of the innocent party. It clearly defines what a breach of a contract is. According to this law, in case of an employment contract, the employer and the employee needs to fulfil all the elements of a contract. But in case, if all the elements are not fulfilled, the party who did not fulfil their part is known to be the one which committed the breach of the contract and in such a case, the contract becomes the one the basis of which the innocent party can sue the other party (Utz, 2015). In such a scenario, in fact, a claim can also be made by the innocent party for the harm or the damages caused (Owen Hodge Lawyers, 2020).

Application: The case as such talks about the contract that was entered by Amina and Bryan when an offer was made on part of Amina and Bryan accepted on the same. Breach was made on part of Amina when she told Bryan about the condition of not being able to provide the job due to here financial situation. This resulted in Bryan being the party who suffered losses as he lost his job due to the breach of contract being committed on part of Amina or the employer.    

Conclusion:  

In this case, Amina will be liable for the damages being claimed by Bryan as he was relying on this job. Apart from that, Amina will also be liable for the breach of contract on her part, due to non -completion of the contract or the breach being made by her economic condition.

 

Bibliography

Alden, S., Ottaway, A. & Tetstall, J., 2012. Australia: Drafting contracts: guidance on managing ambiguity. [Online] Available at: https://www.mondaq.com/australia/contracts-and-commercial-law/163072/drafting-contracts-guidance-on-managing-ambiguity [Accessed 26 May 2020].

ANU, 2020. The Australian Legal System. [Online] Available at: https://libguides.anu.edu.au/c.php?g=634887&p=4547083 [Accessed 17 May 2020].

ASIC, 2020. External administration. [Online] Available at: https://asic.gov.au/for-business/small-business/closing-a-small-business/external-administration/ [Accessed 17 May 2020].

Austen-Baker, R. & Hunter, K., 2020. Infants' Contracts: Law and Policy in the 18th and 19th Centuries. Journal of Contract Law, 36(4), pp.1-24.

Australian Constitution Center, 2020. SEPARATION OF POWERS. [Online] Available at: https://www.australianconstitutioncentre.org.au/separation-of-powers.html [Accessed 26 May 2020].

Harvey, C., 2017. Foundations of Australian Law. Tilde Univ Pr. Available at: https://www.scribd.com/doc/309295065/Australian-Corporate-Law [accessed 17 May 2020].

Law Wagon, 2020. Contract and Tort Law. [Online] Available at: https://www.lawwagon.com/personal/contract-and-torts [Accessed 17 May 2020].

Lexology, 2020. Doctrine of contra - proferentem in contracts. [Online] Available at: https://www.lexology.com/library/detail.aspx?g=a62bcace-e2b2-463f-b9b6-08afcac82ac5 [Accessed 26 May 2020].

Mäntysaari, P., 2010. The Law of Corporate Finance: General Principles and EU Law. Springer-Verlag Berlin Heidelberg. Available at: https://epgp.inflibnet.ac.in/epgpdata/uploads/epgp_content/S000006CO/P000394/M010364/LM/1455605310COM_P10_M11_know_more.pdf [accessed 17 May 2020].

National Action Plans on Business and Human Rights, 2020. Corporate law & corporate governance. [Online] Available at: https://globalnaps.org/issue/corporate-law-corporate-governance/ [Accessed 17 May 2020].

Owen Hodge Lawyers, 2020. Breach of Contract. [Online] Available at: https://www.owenhodge.com.au/commercial-litigation/breach-of-contract/ [Accessed 26 May 2020].

Palmer, J., 2020. What is the difference between liquidation and administration? [Online] Available at: https://www.realbusinessrescue.co.uk/articles/business-liquidation-bankruptcy/liquidation-and-administration [Accessed 17 May 2020].

Routledge, 2020. Capacity. [Online] Available at: https://cw.routledge.com/textbooks/stone/capacity.pdf [Accessed 26 May 2020].

Utz, C., 2015. Australian Contract Law. [Online] Available at: https://www.acc.com/resource-library/australian-contract-law [Accessed 26 May 2020].

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