Study Material on Contracts, Negligence, and Agency Law

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Title page
Name of the student
Student Id

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Contents
Question 1..................................................................................................................... 3
Part A 3
Issue 3
Law 3
Application.................................................................................................................... 3
Conclusion..................................................................................................................... 3
Question 2..................................................................................................................... 3
Issues 3
a) 3
b) 4
c) 4
Law 4
Applicable law................................................................................................................ 4
Conclusion..................................................................................................................... 5
Question 3..................................................................................................................... 5
Part A 5
Issue 5
Law 5
Application of law............................................................................................................ 6
Conclusion..................................................................................................................... 6
Part B 6
Question 4..................................................................................................................... 7
Issues 7
Applicable law................................................................................................................ 7
Application of law............................................................................................................ 7
Conclusion..................................................................................................................... 8
Analysis........................................................................................................................ 8
Reference List............................................................................................................... 10

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Question 1
Part A
Issue
Whether the signing of Head of agreement establishes a contract between Jeff and Tina?
Law
The parties to the contract have an obligation to fulfill the terms that are made part of the
contract. The parties enter into negotiations before the contract is made. At times the
negotiations are orally agreed by the parties and only a more elaborated or formal
document is to be established. In such situation, the oral negotiation or the mere
agreement is considered to be binding as the parties are not willing to bring any kind of
further negotiation and is held in Masters v Cameron (1954). But, if there is any term
which brings the need of any kind of further negotiation, then, the agreement has no
binding effect and the agreement is not binding and is held in Tabcorp Holdings Limited
v The State of Victoria [2014]. (Chitty, 2012)
Application
Jeff is a business man and intends to sell his business to Tina. Both of them agreed and they have
established an agreement between themselves which was signed by both the parties.
Apart from the several terms, one of the term stated that the agreement should be later
prepared into a formal contract and such contract should be approved by the solicitor.
But, it is stated that since all terms are communicated and agreed amid the parties and it is only a
formal text is to be prepared then the agreement itself is binding.
Conclusion
Tina is bound by the agreement and must purchase the business of Jeff.
Part B
If a term in the agreement specifies that the agreement is subject to Tina seeking finance, then, it
is not the term which does not bring changes to the obligation of the parties. Rather, the
parties still wish to bring bargain to the agreement and thus the agreement is not binding.
Question 2
Issues
a)
Is the unpaid debt be paid by Phil?