Project #196570 - BUisness law

Law Tutors

Subject Law
Due By (Pacific Time) 08/20/2017 12:00 am

Needs to be 2000 words (excluding Reference)

Question 2 and 3 need to be answered using (IRAC)  format





Needs to use Australian law



Question One


Obtain a copy of a written contract that is available in Australia (online or hardcopy). 


(i)        Describe and classify four terms from the contract as either a condition, warranty or intermediate term, explaining why you believe each term would be classified this way. Your responses MUST be supported with relevant case authorities.  (8 marks)


(ii) What would be the practical consequences of a term being classified as a condition, warranty or intermediate term (2 marks)


(10 marks)









Question Two 

 Claudia has recently started a sole trader business named FWX. FWX sells fireworks under a special permit she has obtain from the NSW State Government.  As there are only a limited number of permits, her business has been going very well and she is already turning over $15,000.00 a month through online sales. Claudia is also a trained architect and is keen to return to this profession. She is explaining all of this one night over dinner to her friend Ahmad and he suggests that maybe he could ‘manage’ the fireworks business for her. 

 They meet up again the next day, on 1 July 2017, to discuss how this could work and agree on the following in writing:

 As of today:

 § Ahmad will contribute his empty shop as the premises for FWX to operate from    and a place to store the stock. 

 § Ahmad will manage all customer requests and will ensure that compliance with the government permit is maintained. 

 § Ahmad will be entitled to the reimbursement of any costs but will not be entitled to a wage for his time spent working for FWX.

 § Claudia and Ahmad will split the profits at the end of each quarter 60% (Claudia): 40% (Ahmad).

 Ahmad asks if there can be an acknowledgment in writing that he is not to be considered a partner of the business. Claudia agrees to this. 

 After making this agreement the following happens:

 § On 5 July 2017 Claudia submits an order for $10,000.00 of fireworks from BrightSpark, to be paid within 5 days’. The fireworks are delivered the next day. 

 § On 6 July 2017 the NSW government announces that it has issued 5 more permits for the sale of fireworks and as a direct result, FWX experiences a significant drop in orders during July. 

 § On 30 July 2017, FWX still doesn’t have the funds to pay the $10,000.00 owing.

 § BrightSpark is now intending to recover the money outstanding through court action.

 Discuss Ahmad’s potential liability for the $10,000.00 owing. Support your response with relevant case authorities. 

 (10 marks)




Question Three 

 Jessica has recently won the lottery. While visiting her friend Mario, she notices that the front fence at his house has fallen over. Mario explains that he had previously obtained a quote of $5,000.00 from JJ Construction but hadn’t gone ahead due to the cost. He acknowledges that one of the reasons it is so expensive is that he asked for recycled bricks. Mario explains that this is very important to him as it will mean the fence matches the rest of the house. 


When she leaves, Jessica takes the quote and tells Mario that she is going to use some of her recent winnings to get the fence built for him.   


The next day Jessica contacts JJ Construction, a sole trader business owned and operated by her brother Gerald. She provides the quote number to Gerald and explains that she would like to arrange for the fence to be built at Mario’s house. Gerald says that he would be prepared to offer her the same terms as offered to Mario with a 10% discount on the price, so that the total would be $4,500.00. Gerald sends her an updated quote and asks her to sign it if she would like to go ahead and return it along with a $450 deposit. Jessica does this on Wednesday. 


The following week JJ Construction completes the work on the fence. After the initial excitement of seeing the new fence, Mario notices that it is built from cheap cement blocks rather than recycled bricks as specified in the original quote. 


(i)         Advise Jessica whether the three elements for formation of contract are established. Ensure your response is supported by relevant case authorities.  (12 marks)


(ii) Jessica is now about to leave on a round-the-world sailing trip and she is not interested in pursuing JJ Construction anyway as Gerald is family. Assuming there is a breach of contract, advise Mario whether he can personally bring an action in court against JJ Construction? (3 marks)


(15 marks)


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