Question on Business Law 2022

Business Law
Running head: LAW 101 0
Student’s Name
Address

LAW 101 1
Contents
Question 1........................................................................................................................................2
Issue.............................................................................................................................................2
Rules.............................................................................................................................................2
Application...................................................................................................................................4
Conclusion...................................................................................................................................5
Question 2........................................................................................................................................5
Issue 1..........................................................................................................................................5
Rules 1..........................................................................................................................................5
Rules 1..........................................................................................................................................6
Conclusion 1................................................................................................................................7
Issue 2..........................................................................................................................................7
Rules 2..........................................................................................................................................7
Application 2................................................................................................................................7
Conclusion 2................................................................................................................................8
Issue 3..........................................................................................................................................8
Rules 3..........................................................................................................................................8
Application 3................................................................................................................................9
Concussion 3................................................................................................................................9
Issue 4..........................................................................................................................................9
Rules 4..........................................................................................................................................9
Application.................................................................................................................................10
Conclusion 4..............................................................................................................................10
References......................................................................................................................................11

LAW 101 2
Question 1
Issue
What is the legal position of Flyways Airlines Ltd.? Whether the same has any entitlement
against Boing Corporations Ltd?
Rules
A contract brings legal obligation and rights between the parties. As soon as parties develop a
contract, they become liable to fulfill the promises to each other as mentioned under a contract.
When parties fail to act as per terms of the contract, the situation is known as a breach of
contract. In such cases, certain remedies are available to innocent parties under contract law. The
victim party may repeal the contract and may ask for damages too. At some of the times, parties
to the case limit their liability out of the breach of contract by introducing some terms. The same
are known as unfair terms. Mostly such terms are introduced by an exclusion. It is a clause where
parties to the case exclude or limit their liability out of the breach of a contract. Contract law set
out the manner and rules in with an exclusion clause may be inserted under a contract.
The general rule in respect to the exclusion clause is that the same must exist and bring in the
attention of another party earlier or at the time of developing the contract. The reasoning behind
the same is that if a party would not be aware of the existence of such a clause they cannot
assume to accept the same. The facts of the case named Olley v Marlborough Court [1949] 1 KB
532 are important to have a look upon here. In this case, the claimant made a booking of a hotel
room and his contract with the hotel has been developed at the reception desk. Later on, when he
went into the room he found a notice containing exclusion clause where it was written that hotel
would have no liability in respect to lost or damaged of any property. In the decision of the case,

LAW 101 3
the court declared the note ineffective and stated that at the moment when claimant saw the
notice, a contract was already there (Dannemann and Vogenauer, 2013). L'Estrange v Graucob
[1934] 2 KB 394 Court of Appeal, is an important case where the court has decided that in those
cases where the exclusion clause is a mentioned in a written contract, parties seem to agree with
such clause as soon as they sign the contract. Another condition is providing reasonable notice.
Party, who seek to rely on such clause, is required to verify that the same has taken necessary
steps to give reasonable notice to another party. It means that the party who introduces the
exclusion clause is required to demonstrate that the same taken steps to carry the exclusion
clause in the attention of another party. In the case of Thompson v London, Midland and
Scotland Railway Co [1930] 1 KB 41 Court of Appeal, the claimant got injury whilst stepping
off a train. The Railway station placed notices s at many places that the railway company is not
liable for personal injury claims. The claimant argued that the clause was not incorporated
properly and the same was missing at the moment when contract was developed. Her ticket also
stated that terms and conditions displayed at the platform were subjective to the case. In the
decision, the court provided that the defendant cause was properly incorporated as reasonable
efforts have been made to bring the same into attention of parties.
Another important case of the area is Interfoto Picture Library v Stilletto [1989] QB 433. In this
case, the claimant had a photo library. He advanced some transparencies to the defendant. With
the photos, he also provided a document in the package whereby it was mentioned that if
transparencies would not be reverted within 14 days then the defendant would be liable for
additional charges per photo. The defendant did not pay attention to this document and forgot to
return transparencies. Court decided the matter and provided that term was not a part of the
contract. It was given that when a term is particularly onerous then the party who seeks to reply