Project #161931 - buisness law

Business Tutors

Subject Business
Due By (Pacific Time) 01/05/2017 11:00 pm

must number your answers consistently with the questions.


Word limit:


The maximum word limit is 2000 words.  The word limit does not include referencing. There is no 10% margin of error on the word limit and you may not use footnotes to get around the word limit (such as by placing extra text in the footnotes). Marks will be deducted if there are excess words.


Style and Format:


Your responses should be in full sentences and written in a formal, business-like tone.




The marking criteria and standards are set out in the Learning Guide on p 15 and will be used when marking and to provide feedback on your assignment. You may find it helpful to consult these while working on your assignment. See the Learning Guide for other information about the assignments.




 Part I (20 marks)


Contract Drafting


Our office represents a wealthy Sydney industrialist named Roscoe Semple. Semple owns seven and a half acres in Wolli Creek. He wants to build a luxurious residence on this land. The address will be 1000 Diablo Road. He has contacted a firm of architects called Prose and Conz with offices in Sydney.




The man with whom he has discussed the matter is Alex Prose. Semple thinks Prose is a magnificent architect. While Semple is willing to make the contract with the partnership, he wants it clearly understood that Prose will do all of the architectural work. If for any reason Prose is unable to do so, Semple does not want to deal with anyone else.




The house is to be a rambling, two-story, English Tudor house. It will be luxuriously fitted and about all that is set so far is that it will be at least 8 bedroonms, 8 baths, a large formal dining room and a 40 by 60 living room. In addition, there will be horse stables, a large swimming pool, cabanas, an observatory and small putting green.




The fee will be based upon the total construction cost. If the construction cost is kept below $200,000, the fee is to be 12%. From $200 to $225 thousand, 'the fee is to be 10%. From $225 to $250 thousand, it is to be 8%. If the costs go over $250,000 the fee is to drop to 4%. Semple is trying to set up the decreasing percentage to make certain that the costs are kept in line.




Prose has assured Semple that if at any stage of the design work by Prose, Semple is not satisfied, then Semple can cancel the contract and it will not cost Semple anything.




Prose has also agreed that he will give intense supervisory work to this building. It is to be a show place and its completion will be a feather in Prose's cap. (Prose wants to be able to show prospective clients around at reasonable times.) Prose has assured Semple that the contractor selected for the construction will perform up to the standards set forth in the plans and specifications.




The basic fee will include travel expense of the architects.




All consultants' fees are included in the basic fee except that of a landscape architect. Semple wants Horace Hedge, a prominent landscape architect, to handle the landscape design features. Prose will pay Hedge for landscape architectural services and this will be reimbursed to Prose by Semple with 5% added for overhead cost.




Semple wants it clearly expressed in the contract that under no circumstances will this house ever be duplicated. He wants Prose's promise not to do any house resembling this and also to copyright the plans and specifications.




Please draft a contract which will express the understanding that has been given in this memorandum and also any other clauses which you think should be included in such a contract. As for the bargaining position, Semple wants very much to use Prose as his architect. However, make certain there is nothing in the contract which is unfair to Semple.






Part II (10 Marks)




Question 1




Whilst at work Andy always parked his car in a car park operated by Bash Ltd.  On the entry to the car park just in front of the payment machine there is a large sign in fluorescent red paint which states;




‘These premises are not staffed by our employees and may be dangerous.  Clients use these facilities strictly at their own risk and Bash Ltd accept no liability whatsoever for any damage or injury sustained by either those using this facility or their vehicles or property, no matter how caused’




Andy was aware of the sign, but had never paid much attention to it.  However, one day he returned to his car to find that it had been badly damaged by a towing vehicle driven by an employee of Bash Ltd.  Whilst on his way to the car park office to complain he was hit by the same towing vehicle, which was clearly being driven dangerously by one of Bash Ltd’s employees.  As a result, not only was his car severely damaged, but he suffered a broken leg and was off work for eight weeks. 




Bash Ltd has accepted that its employee was negligent on both counts but denies any liability relying on the exclusion clause.




Ø  Advise Andy whether there is any action he can take against Bash Ltd.






Question 2




Mark is the owner of a distinctive and expensive mountain bike. Mark agrees to sell the bike to his friend Jane for $5000.  Jane pays Mark in case for the bike, however, Mark keeps possession of the bike in order to make some repairs and touch up the paint work.  Mark sends the bike to the bike shop to be fixed.  Whilst the bike is at the shop, Stan offers Mark $6000 for the bike.  Mark agrees to sell the bike to Stan and rings to the bike shop to tell them to release the bike to Stan when he comes to the shop. Stan tells Mark that he will pay the bike shop bill and gives him $6000 in cash.  Stan picks up the bike.  When Jane comes to collect the bike, Mark gives her the $5000 back and tells her that he has changed his mind.


Ø  Advise Jane of her rights.



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