Subject Code : LAW10159
Country : Australia
LAW10159 - Principles of Contract Law - Essay Writing Assessment Answer
Task:

Q1 
Explain the significance of the decision in Ermogenous regarding intention to be bound.
You will be assessed on your ability to:

  •  Explain the decision in Ermogenous;
  •  Explain the effect that decision has upon the “old” presumptions;
  •  Make appropriate use of key cases; and
  •  Fulfil standard academic requirements regarding referencing, style, argument, coherence, grammar and spelling.

Q2 (HIRAC recommended)
Helen owns and runs a large restaurant in Sydney. She enters into an agreement with Geoff for him to provide all the vegetables for her restaurant for the next five years. The agreement, signed by both parties, includes the following clause:
No court shall have power or jurisdiction to arbitrate in respect of any matter arising out of this agreement or any breach thereof.

One year later, Helen informs Geoff that she is no longer going to use him and instead, is going to use John to supply her with vegetables.

You will be assessed on your ability to: LAW10159

  •  Identify the major heading for each issue;
  •  Identify each legal issue;
  •  Identify and describe the relevant legal rules (including illustrative cases);
  •  Apply the legal rules to the facts; and
  •  Come to and state your conclusion.

Q3 
Has there been a valid offer and acceptance in each of the following situations? As well as answering yes or no, cite the relevant rules and cases (if cited in textbook).
a) Bill, a nicotine addict, sees an ad in the newspaper promising… “Ace Cig-Quit is guaranteed to cure your smoking addiction. Buy it! Use it! If your addiction isn’t cured Ace will deposit $100 into your nominated bank account”. Bill purchases Cig-Quit and follows the packet instructions but his habit remains as strong as ever.
b) Jenny offers to sell her old Commodore to John for $2000. John tells her that he was willing to buy it for $1800. Jenny says she won’t sell it for anything less than $2000. John now says he’ll buy it for $2000 but now Jenny says she’s changed her mind and wants to keep the car.
c) Richard offers to sell his Rolls Royce to Angela for $450,000. Angela, unaware that Richard has died, accepts the offer.
d) Mike emails Helen offering to sell his computer to her for $3000 but makes it clear that he wants her answer in a reply email by 5.00pm that day. Helen is so excited she texts Mike immediately saying she accepts his offer.
e) David leaves Emma a voice message on her phone saying that he will buy the sculpture of the whale in her front garden for $1000 and adds that “…if I have not heard from you by Friday 5.00 pm I will assume we have a deal and drive over to collect it on Saturday morning”.
f) Ron offers, in a letter posted on 1 July, to sell Draco his Commodore for $2000. Realising how much he loves that old car, Ron changes his mind and, in a letter posted 3 July, tells Draco he is withdrawing the offer. Draco receives the letter containing Ron’s original offer on 5 July and immediately emails Ron accepting the offer. Ron’s letter of withdrawal arrives on 6 July.

You will be assessed on your ability to:

  •  Identify whether or not there has been correct offer and acceptance; and
  •  Identify and describe the relevant legal rules (including illustrative cases if cited in textbook) or statutes.

Q4 
Mila borrowed $5000 from Chloe. The agreement stated that the full amount was payable on 30 January. Shortly after arranging the loan, Mila lost her job and has been unemployed ever since.
For each of the following scenarios:

  •  State the relevant rule
  •  Cite the relevant case
  •  Answer Yes or No (that’s all) to this question; If Chloe sues Mila for the outstanding $1000 will she win?

(a) On 30 January, Mila approaches Chloe, saying: “I only have $4000. Will you accept that amount in full satisfaction and agree not to sue me for the remaining $1000.”
(b) Mila informs Chloe that she will sell her car if Chloe will take the proceeds in lieu of the amount owed. Chloe agrees even though she plans to sue her at a later stage for the difference. Mila sells her car for $4000, hands over the money on 30 January.
(c) Mila’s father, Theo, offers to pay Chloe $4000 if Chloe agrees not to sue Mila for the remaining $1000. Chloe agrees so Theo hands over the money on 30 January.

Q5  (HIRAC recommended)
Police Constable Smith was on his daily foot patrol with his trust police dog, Inspector Rex,when he heard on a shop radio that a man had robbed Mrs Verity Rich of her diamond rings worth $50,000. The radio report went on to say that a reward of $1,000 was being offered to whoever helped her get her rings back. Soon afterwards Rex saw someone acting suspiciously and led PC Smith to the man who had robbed Mrs Rich. PC Smith arrested the thief and took possession of the jewellery. Mrs Rich, although delighted with the return of her jewellery, refused to pay the reward to PC Smith.

You will be assessed on your ability to: LAW10159

  •  Identify the major heading for each issue;
  •  Identify each legal issue;
  •  Identify and describe the relevant legal rules (including illustrative cases);
  •  Apply the legal rules to the facts; and
  •  Come to and state your conclusion.

Q6  (HIRAC recommended)
Ginny celebrates her birthday at the local pub and drinks 9 glasses of beer and 7 glasses of champagne in the afternoon. Late in the day, while still at the pub, she meets Steve, a salesman, and she enters into an agreement with him to buy a book on women’s health. The next day Ginny awakens with a shocking hangover and little recollection of the previous day but finds in her pocket a copy of an agreement to purchase the book for $200. She then hears a knock on the door, which she opens to find a courier driving away and an extremely large book entitled GLOW!! on her doorstep. Four months later Ginny phones Steve and tells him she rejects the book and he should make arrangements to get it back. Steve refuses to give her back her $200 claiming that there was a valid contract.

You will be assessed on your ability to: LAW10159

  •  Identify the major heading for each issue;
  •  Identify each legal issue;
  •  Identify and describe the relevant legal rules (including illustrative cases);
  •  Apply the legal rules to the facts; and
  •  Come to and state your conclusion.

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  • Posted on : August 21st, 2018
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