Australian Commercial Law Assignment: Breach of Contract
Question
Task: PART-A: Sally started her new store. A dispute arose when Ethan found out that Sally had done this. Within six months Ethan realised that his business had few customers and trading was very weak.
- How would a court determine whether there was an intention to create legal relations in the agreement between Sally and Ethan? You should support your analysis with case references.
- If this sale of business contract dispute between Sally and Ethan goes to court how would a court assess the representations made by Sally before the parties reached agreement about the sale? What remedies could be awarded to Ethan should he be successful? You should support your analysis with case references. Only discuss the common law in the answer. Do not discuss statute.
- Would a court view as reasonable in the circumstances the restraint of trade term in the agreement between Sally and Ethan? What possible remedies could be granted if Ethan was successful in legal action against Sally’s starting the new store? You should support your analysis with case references. Only discuss the common law in the answer. Do not discuss statute.
PART-B: What action could Sally take against Good Health Help Pty. Ltd under the Australian Consumer Law legislation? Include the issues of remedies and consumer guarantees in the analysis.
PART-C: Explain whether Sally could take legal action in negligence against David for the accident on July 4 based on common law and state legislation legal principles.
Answer
PART-A
1.Issue
According to Graziano (2019), the problem is the breach of contract between Sally and Ethan as Sally started a convenience store within 20 kilometres of the already existing store he had. Sally did not inform about this information to Ethan and Ethan faced problems while handling the operations of the new store. The issue of the application of the specific everyday law matters in this case of Australian commercial law assignment.
Rule
According to Knapp et al., (2019), the actual breach of contract happened in the issue as mentioned earlier related to the case as one party failed to accomplish the agreement of the contract and this creates the problem. Only the parties associated with a specific deal are bound by the norms and terms of the contract being framed. In this issue, Ethan can take the help of a contract lawyer to solve the legal problem issue he is facing.
Application
According to Kaufmann (2017), Companies must have the legal structure framed with the help of abiding by the Corporations Act 2001. This act tends to help in the formation of business companies and develop their business functions in the open market. This is considered as a statute and is regulated by the Australian Securities and Investments Commission.
Conclusion
By studying the issue and the rules being involved and applied to solve the problem, it can be concluded that the breach of contract between Sally and Ethan as Sally did not keep the promise or agreement and Ethan felt that he was undone following the contract law practices.
Remedies
The remedies will include the utilisation of the relevant case laws that will guide the affected party Ethan to get the required justice from the breach of contract. The guidance of the contract lawyer will also help.
2. Issue
The issue highlighted in this part of Australian commercial law assignment relates to the legal infringement of the agreement associated with the business dispute between Sally and Ethan over selling and buying of the existing purchase store within one year in a distance of 20 kilometres radius. It was stated by the statistical records that the store owned by Sally had recorded growths in the previous three years, but in reality, that was not true. So, the issue of involving good faith in negotiating business terms is associated with the legal breach of contract. This helps in systematically developing the problem by adhering to the various laws and policies.
Rule
According to the norms laid down by the Australian courts, the express contractual obligation is utilised with true allegiance and imposed by Australian commercial law is chosen and specific cases. According to Kerwin & Furlong (2018), the express obligation needs to be drafted precisely so that it has relevant meaning and significance within the legal system and implementation of the legal activities and procedures ideally. In the case as mentioned above within the present study of Australian commercial law assignment, developing good faith while negotiating the business deal should have been taken but it was not to be as Sally did not abide by the contractual agreement and gave away wrong information and facts about the business transactions and growth. This misled Ethan, and he faced losses.
This fell under the purview of the actual breach of contract and needed remedies by contacting a contract lawyer and seeking his legal counsel.
Application
The laws related to litigation and dispute resolution framed in 2019 has to be applied in this case to resolve it. According to Barkan (2018), the application of the litigation and dispute resolution will help in establishing the specific laws that are relevant and tend to help in solving the breach of contract that happened between Sally and Ethan. The Australian court would assess the case of Sally and Ethan and tend to provide remedies by applying the suitable laws according to the situation-specific scenario. The court would determine the representations made by Sally before reaching an agreement with Ethan as falsified and deceiving. This led to the sharing of the wrong information that violated the contract agreement.
Conclusion
The issue of the court's representations of Sally's statements about the store and its growth prospects was covered. According to Martyn et al., (2017), the falsified and deceiving version that violated the issue of good faith while negotiating in a contract was discussed and the legal counsel to be adopted by the affected party was given. The laws related to litigation and dispute resolution that is followed within the proper setup was covered and applied upon the case of the breach of contract. The sharing of wrong information by Sally to Ethan also came up.
Remedies
The remedies that Ethan deserves to get if he is successful will be to receive the necessary funds that he utilised to carry out the trading operations and activities only to find out that the store did not run and operate properly earlier under Sally. Ethan deserves to be compensated by the Australian court of law in cash or kind as he tends to waste his time on the business venture given to him.
3. Issue
The legal issue mentioned in this part of Australian commercial law assignment illustrates whether the breach of the term or contract will include the restraint posed by the trade term or agreement made between Sally and Ethan. According to Shahidehpour & Alomoush (2017), trade terms should have been appropriately maintained. Good faith was not supported in this breach of contract between Sally and Ethan.
Rule
The rule of the contract law states that in the case of a business dispute between Sally and Ethan, the actual breach was said to have been taking place and this helped in specifying the strategies and legal terms that have a positive impact upon developing the business operations
Application
The application of the contract law will take into consideration whether the store operated by Sally fell under the purview of the Corporations Act 2001. The court would also help in the application of the legal terms and contract that would help in establishing the solutions for resolving the legal issue.
Conclusion
It can be concluded after analysing the above details in this Australian commercial law assignment that the issue of the restraint of the trade terms and agreement between Sally and Ethan was illegal, and the court assessed it according to the legal terms and procedures. According to the contract law, the negotiating terms to be involved within the development of the business activities should be transparent.
Remedies
The remedies could be provided to Ethan if he was successful in legal action associated with Sally starting the new store. Ethan will receive the necessary compensation once the breach in contract by Sally was proven in court.
PART-B
Issue
The legal issue mentioned in this Australian commercial law assignment was related to Sally visiting the new store and supervising its operations when she fell on the slippery floor of the storeroom operated by David. Sally had injured her back, and this caused her to spend two weeks in the hospital. After her short stay in the hospital, Sally took the help of a medical Company named Good Health Help Pty. Ltd., and the Company suggested her wrong treatment of undergoing a back surgery that would heal his injuries. This was based on incorrect information, and the provision of the false suggestion aggravated the injuries of Sally. Under section 267, an individual can recover the amount spent by them in having achieved foreseeable failure in listening to the recommendations of the healthcare company.
Rule
According to Carson & Kerr (2017), Australian Consumer law tends to devise rules and norms by which any individual who is undone or receives maltreatment from the pharmaceutical companies would be compensated according to the extent of damages faced by them. Certain consumer guarantees are provided by the Australian consumer law that includes delivering proper customer services by adhering to the quality and other standard measures associated with the development of the operational functions and activities. Under section 60 of the Australian Consumer law, the pharmaceutical companies and the hospitals tend to promise about serving individuals with great care and skills. This promise was not kept by the Good Health Help Pty. Ltd., and the law under section 60 was violated. Under section 267, Sally legally had the rights to receive the compensatory amount from the organisation named Good Health Help Pty. Ltd. for being misguided by them.
Application
The rules and laws will be applied following the Australian consumer law that helps in implementing the legal activities and services associated with the specific case. Sally was given the wrong information by the pharmaceutical company, and her injuries got aggravated. The pharmaceutical company had to be fined, and other necessary actions would be taken to help Sally get justice. The breach of a duty of care can also be brought against the Company for misleading the individual who sought the medical services.
Conclusion
Sally was violated according to the Australian Consumer law and the pharmaceutical company which misled her had to pay the compensation to ensure that justice was meted out to the affected party. The medical health company was accused of the breach in the duty of care, and that affected Sally as her injury had aggravated after being suggested by the company to get herself operated upon. The compensatory lawyers had to be consulted to help in establishing the activities and services that provided justice.
Remedies
The specific remedies could be provided to the affected individual to get justice. The compensation, according to the acts related to the provision of them, could be developed. The specific policies could be followed and implemented to devise the steps that are relevant in ensuring the establishment of the legal activities. Sally would be promised by the medical health company that they would rectify their flaws and improve upon their services by including the clause.
PART-C
Issue
The legal issue explored in this Australian commercial law assignment is related to whether Sally could take legal action against David for negligence on July 4 due to the accident that occurred to her on the store of David as she slipped. Sally went to supervise her new store on July 4, and she slipped on the wet floor and had a severe back injury that got aggravated. Sally could easily take legal action according to the fundamental legislative principles falling under the purview of Section 4 of the Legislative Standards Act 1992 (Qld). This would help Sally to receive justice and solve the legal issue smoothly.
Rule
The rule would include the different universal laws and contract laws that would help in guiding Sally to get justice. The newer legal systems involved in the legislative principles would help in establishing the legal activities and services within the legal sphere. Justice would be provided to Sally by devising the legal strategies and policies that are relevant to solving the problem issue sufficiently. The legal systems are developed following the suggestions provided by the contractual lawyers who would guide the affected individual to take the right course in settling the constitutional issue by adhering to the legal aspects.
Application
The different laws and legislations will be applied by devising the appropriate strategies and policies that are relevant to providing justice to Sally. Sally would be able to sue the store owner David for not ensuring the safety of other individuals visiting his store by applying the necessary Australian consumer laws. Sally can also file a case for compensation as a result of suffering a severe back injury while slipping on a wet floor of the store run by David. The Australian court will listen to the case and give a proper verdict related to Sally getting the just decision.
Conclusion
The case discussed in this Australian commercial law assignment can be concluded as the specific legal steps and measures were discussed to be followed and implemented within the organisational sphere to help Sally get justice. The legal norms and the policies according to the Australian consumer law were developed to help Sally receive the compensation that she required for the unnecessary injury she received for falling on a slippery floor in the store of David. The store was not managed well, and David could also be accused of negligence in the duty of care and would have to pay the fine to Sally.
Remedies
The remedies that could be provided to Sally was the compensation and proper justice. David would have to give the promise that he would not be negligent about the duty of care from next time and would be careful of the services offered to the customers. The customer’s safety would be ensured, and strategies related to following the workplace legislation would be developed.
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Reference List
Barkan, S. E. (2018). Law and society: An introduction. Routledge.
Carson, E., & Kerr, L. (2017). Australian social policy and the human services. Cambridge University Press.
Graziano, T. K. (2019). Comparative contract law: cases, materials and exercises. Edward Elgar Publishing.
Kaufmann, W. (2017). Going by the book: The problem of regulatory unreasonableness. Routledge.
Kerwin, C. M., & Furlong, S. R. (2018). Rulemaking: How government agencies write law and make policy. Cq Press.
Knapp, C. L., Crystal, N. M., & Prince, H. G. (2019). Problems in Contract Law: cases and materials. Aspen Publishers.
Martyn, S. R., Fox, L. J., & Wendel, W. B. (2017). The Law Governing Lawyers: Model Rules, Standards, Statutes, and State Lawyer Rules of Professional Conduct, 2017-2018 Edition. Wolters Kluwer Law & Business.
Shahidehpour, M., & Alomoush, M. (2017). Restructured electrical power systems: Operation: Trading, and volatility. Australian commercial law assignment. CRC Press.
