Commercial Law: Contracts, Misinterpretation, and Legal Issues

This document covers various topics related to commercial law, including negligence claims, enforceable contracts, legal remedies, employment contracts, non-compete clauses, misinterpretation in real estate transactions, and strategies for resolving disputes and mitigating damages. It provides insights into the relevant laws and acts in New Zealand and offers guidance on navigating legal issues in the commercial sector.

Commercial law

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Table of Contents
Answer 1)....................................................................................................................................................2
Answer 2)....................................................................................................................................................3
Answer 3)....................................................................................................................................................3
Answer 4)....................................................................................................................................................4
Answer 5)....................................................................................................................................................4
Answer 6)....................................................................................................................................................5
Answer 7)....................................................................................................................................................5
References...................................................................................................................................................6

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Answer 1)
Answer i)
After reviewing the scenario, it is seen that Beta by Design organization has created a website for
Jason, but it got affected by the malware program, and all the data was hacked. Due to this
reason, Jason faced huge loses in his financial prospects and thus, a piece of advice is provided
for claiming the negligence of the IT developer. The elements that Jason must use for claiming
the negligence are duty, causation, breach and damages. The duty of care is the first element that
he must claim and this will help him to the defendant the legal duty of the IT developer (Cordery
and Simpkins, 2016). The second element is the causation which occurs due to the negligence of
the employee on making the website properly. Breach and damages are the third and fourth
element that occurs due to the falling of act that harmed the whole business process of Jason.
Answer ii)
The legal adviser should bring the legal action for Jason on the Beta by Design website
organization for ruining their device only for their negligence activity.
The law that should apply in this condition are the Companies act 1993 which includes Financial
Reporting Act 2013, Financial Market Conduct Act 2013 as well as the Crimes Act 1961 of
Sections 100 and 105F of New Zealand (Bullians et al., 2018).
Answer iii)
The case scenario reveals that Jason faced a huge amount of loses due to the malware and
hacking of their devices. The malware function increased the IRD penalty rate, affecting their
new accounting system, which overall reduced their number of consumer. The rule that should
be applied in this condition is the Exclusionary Rule of New Zealand that can help Jason to
recover the money that was lost by the firm due to this hacking procedure (Mason and
Macintosh, 2015). By applying this rule, Jason should collect the whole amount of losses which
includes both 4000 dollars and also the 3000 dollars that was lost for each month from the
organization who made the wrong approach for website design.

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Answer 2)
The contract that was made by the family members in terms of the online store is a valid and
enforceable contract. Both these contracts are legally binding agreement that was made in an
electronic document where both the parties signed together. Besides this, the family member also
made a different contract for the retail store, which is a bilateral contract (Gush et al., 2018). In
this contract, the retailer has to promise their consumer to provide high-quality products and
services to them so that the people can get satisfied. Apart from this, another contract was made
by the family member for the manufacturing company. According to the family member, the
contract must be an express contract where the purchaser expresses their thoughts over products
range, and this has to be signed by the manufacturing companies (McLean, 2017). All these three
types of contracts are of the written agreement so that both parties can follow this properly.
For making a contract, proper legal laws have to be followed by the parties. After that, an
agreement is made, and then consideration, intention, form and capacity of the contract are
attached. For making a valid and enforceable contract, a legal agreement should be made where
the quality standard of goods should be considered by making a fruitful intention that easily
fulfils the capacity of the firm (Gush et al., 2018). In terms of a bilateral contract, for the
agreement, some amount has to be paid by both the parties to follow their intention, capacity,
consideration and form. Lastly, in terms of express contract, the buyer should express their views
when the agreement makes that demonstrates their consideration, intention, form and capacity
over the product range of the manufacturing company.
Legal problems have been encountered for making these contracts, but with the help of the New
Zealand government, all these issues can be resolved properly. Each contract is made in front of
the two parties that are associated with the contract, as mentioned above (McLean, 2017).
Besides this, for making these contract enforceable, the offering, acceptance and consideration
are the three requirements that must be useful for signing the agreement by the two parties.
Answer 3)
From the scenario, it is revealed that Judy has made a contract with a builder for making a garage
at an amount of 8,000 dollars. According to their contract, the builder has to complete the garage
by1st June, but the builder requested Judy to provide an additional amount of 500 dollars for
building the garage. Following this, for the first situation, Judy should not agree to pay the

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additional amount. If Judy pays the additional amount, then it is essential for the builder to
complete it as fast as possible and not on 1st June as mentioned in the contract. If the builder can
break the rule, then it can be possible for Judy to make her demand for completing the garage
before the estimated time frame (Wilkins et al., 2018).
For the second condition, if the builder agrees on Judy statement that he should complete the
garage within 25th May after giving the additional amount, then it is necessary for Judy to pay the
additional amount. This condition of Judy is beneficial because it influences the builder to
complete the work before time. Both these situation of Judy and builder are violating their
contract agreement, but the second situation is advantageous for Judy because it influences the
builder to complete his work before the stipulated time frame (Roberts, 2016).
Answer 4)
After reviewing the scenario, it is seen that Hine legal condition was not so fruitful for her, but if
she followed appropriate rules as well as sections of the Act of New Zealand, then it would have
helped her to get rid of the situation. It is seen that Hine was only 17 years old, and due to her
age, the legal rules of New Zealand could provide a decision in favor of this girl. The scenario
reveals that Hine refused to pay the rest of her motorbike instalment as the dealer seold the bike
at a high cost, and she was not able to afford it. In order to refuse it, Hine should follow the
Disputes Tribunals Act rule, which will help her to provide the several disputes that have been
originated in relation to the motorbike. In addition, Hine should follow the Consumer Guarantees
Act of 1993 so that she can easily demonstrate her problem in court through proper legal aspects
(Bartoletti and Pompianu, 2017). Thus by following these relevant rules and act Hine can
describe her legal situation, which helps her to get rid of the problem.
Answer 5)
The scenario demonstrates that Harry and Sally have been misinterpreted by the real estate agent
Vera for the house they have purchased. In accordance to the situation the law of
misinterpretation that has been advise to Harry and Sally are the Contract and Commercial Law
Act 2017 of sections 197 and 201 (2) and section 34 as well as the Contractual Remedies Act
1979 of section 56 and section 60 (2) (Liu and Robinson, 2016). With the help of both these Act,
both Sally and Harry can make the statutory provision based on the fraudulent activities of the
agent and also on the owner of the house. Besides this, by following this legislation, both Harry

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and Sally can easily take the whole amount of 30,000 dollars from the real estate agent and
former owner of their house due to their fraudulent activities.
Answer 6)
In relation to the scenario, the law that should influence bargain in terms of the described
situation is the Employment Contracts Act 1991 and the National Labor Law of New Zealand
(Bartoletti and Pompianu, 2017). Both these law was applicable for the chosen scenario. It is
seen that the large company faced challenges in maintaining their market share, and thus their
gardener Albert purchases the shares only for reducing the company issue. In such a situation, he
must follow both these laws as mentioned above of New Zealand so that he can get some
benefits after buying the shares (Allen, Murphy and Bates, 2017).
Answer 7)
Answer a)
The scenario demonstrates that Angela and Keysha worked in Franz that operated accounting
practices in South Auckland. According to the contract of both these employees, after getting
terminated from employment, they cannot work in the same accountant firm for about two years.
For the presence of such contracts, an enforceability activity can be generated for both Angela
and Keysha after they leave the job from this accountant firm. As per the above clause, the
enforceability can occur on not giving them the desired job that they are looking for their career
in Auckland (Graf and King, 2017).
Answer b)
In such a condition, Camilla faced problem in going to work, and thus she could apply the rules
of Sentencing Act 2002 for reducing the award of damages that she was facing currently as
discussed in the scenario (Fong and Li, 2017). Under this act, Camilla can follow the duty of
mitigation, which can help her to mitigate the problems that she was facing. For dealing with the
award stress and loss of enjoyment, she has to follow all the mental guide and do daily
meditation so that she can easily manage the situation and reduce the delay activity in work as
well as increase the enjoyment activities in life.

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References
Allen, S., Murphy, K. and Bates, L., 2017. What drives compliance? The effect of deterrence and
shame emotions on young drivers’ compliance with road laws. Policing and society, 27(8),
pp.884-898.
Bartoletti, M. and Pompianu, L., 2017, April. An empirical analysis of smart contracts:
platforms, applications, and design patterns. In International Conference on Financial
Cryptography and Data Security (pp. 494-509).
Bullians, M.S., Teulon, D.A., Laws, R., Perry, S. and Hill, G., 2018. Biosecurity partnership and
collaboration: key similarities and differences between the Australia and New Zealand plant-
biosecurity government-industry agreements. New Zealand Plant Protection, 71, pp.357-357.
Cordery, C.J. and Simpkins, K., 2016. Financial reporting standards for the public sector: New
Zealand's 21st-century experience. Public Money & Management, 36(3), pp.209-218.
Fong, Y.F. and Li, J., 2017. Relational contracts, limited liability, and employment
dynamics. Journal of Economic Theory, 169, pp.270-293.
Graf, R. and King, R., 2017, December. Secured transactions technique based on smart contracts
for situational awareness tools. In 2017 12th International Conference for Internet Technology
and Secured Transactions (ICITST) (pp. 81-86).
Gush, J., Jaffe, A., Larsen, V. and Laws, A., 2018. The effect of public funding on research
output: The New Zealand Marsden Fund. New Zealand Economic Papers, 52(2), pp.227-248.
Liu, J.H. and Robinson, A.R., 2016. One ring to rule them all: Master discourses of
enlightenment—and racism—from colonial to contemporary New Zealand. European Journal of
Social Psychology, 46(2), pp.137-155.
Mason, G. and Macintosh, K., 2015. Hate Crime Sentencing Laws in New Zealand and
Australia: Is there a Difference?. New Zealand Law Review, 2014(4), pp.647-679.
McLean, J., 2017. Legislative invalidation, human rights protection and s 4 of the New Zealand
Bill of Rights Act. In Bills of Rights (pp. 237-264).

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Roberts, M., 2016. The formation of variation contracts in New Zealand: Consideration and
estoppel. Victoria U. Wellington L. Rev., 47, p.327.
Wilkins, C., Sznitman, S., Decorte, T., Hakkarainen, P. and Lenton, S., 2018. Characteristics of
cannabis cultivation in New Zealand and Israel. Drugs and Alcohol Today, 18(2), pp.90-98.