Australian Commercial Law PDF

Running head: AUSTRALIAN COMMERCIAL LAW
AUSTRALIAN COMMERCIAL LAW
Name of the Student
Name of the Universities
Author Note

AUSTRALIAN COMMERCIAL LAW1
Part A
Question 1(b)
H.L.A Hart has laid down the conception of law that is known to be the rule of recognition.
There are three requisites in this rule that needs to be prepared to become a law. Firstly, the
establishment of a test for a legal provision in the system of law1. Secondly, it discusses the
validity of the entire thing existing within the legal system that is applicable. And thirdly, all the
laws must be unified that prevails in the legal system that is applicable.
Generally, this means to use the system of three-tier that recognizes of what constitutes law in
such system. This system will be using the structure of descending order that will be from
Statutes to Judicial precedents (common law) to customs.
There are certain segregations that have been prepared in Rule of Recognition that is followed by
the legal system of United Kingdom. This also means that the legal system of United Kingdom
represents the system of three tier. As we know that there is no codified constitution of United
Kingdom but there are various legislations that have been passed over certain years. The
legislation in the constitution of Britain states the relationship between the citizens of Britain and
the states and the functioning of the legislature, executive, and judiciary. The initial criteria will
meet if it lays down of what will be the effective law in this system that will follow various
legislations. These legislations of the constitution provides for the separation of powers to
different sections that might be legislated conferring the validity on every law that is existing in
the system2. The British constitution is the base for the presence of the laws that is present in the
system and it unites every law that prevails in the system. There are sources that make the laws
1 Corones, Stephen G. Competition law in Australia. Thomson Reuters Australia, Limited, 2014.
2 Andrews, Neil. Contract law. Cambridge University Press, 2015.

AUSTRALIAN COMMERCIAL LAW2
of the constitution and these are common law, customary law, and statutory law. Hart's legal
system of three-tier is embodied totally by this system. Therefore, in United Kingdom
Recognition Rule comes down from statutory laws to judicial precedents and then to customary
law.
A similar procedure is followed by the legal system of Australia. A system known as the federal
system is followed by the government of Australia that means governance of a two-tier structure.
These two tiers are distributed as many state government and commonwealth parliament also
known as federal government. Unlike the United Kingdom, Australia has a codified constitution
that is the Commonwealth of Australia Constitution Act. This states the collaboration between
the citizen of the state and many parts of the state3. The government of Australia includes the
principles of common law in their legal system and therefore the principles of common law that
is interpreted by the judicial precedents also effects to bind with them. There are certain customs
that are present in the legal system of Australia. Therefore, it is stated that rule of recognition is
followed by Australia as explained by Hart. It is evident from the information that Australia has
that constitution that states what law should be considered in the legal system of Australia, it
explains the contact between the state, their structure and the citizens of that state. It explains
those legislative powers by which the statutory law has been developed. Thus it helps in the
unity of all the laws prevailing in the legal system. As explained by Hart, the system of three-tier
prevails in Australia by which the laws are recognized through the constitution, including the
principles of common law by the judicial decisions and also including the customary laws. The
legal system of both the countries named Australia and United Kingdom can be linked as both
the countries prevail the system of three tier. The major difference between both the systems of
3 Klee, Lukas. International construction contract law. John Wiley & Sons, 2015.

AUSTRALIAN COMMERCIAL LAW3
these states is that the United Kingdom prevails an unwritten constitution but it has various
legislations that help in regulating the provisions of the constitution and it provides with the
larger scope of interpretation of common laws and recognition of laws4. On the other hand,
Australia carries a codified constitution and it has advanced definitions of recognition of laws.
This states that principles of common law provide with lesser space in incorporating judicial
decisions but it does not have that binding effect as it is in the provisions of the codified
constitution.
Part B
Question two
Issue
Angelo and Barry had signed a contract to buy a vegetable and fruit store. The owner of the shop
made an offer that the shop made high profits and the turnover of the shop is $20,000. There
were no competitors. A statement was made by Angelo was that the shop expenses would cost. It
was mentioned in the contract that the sale included a loader and a delivery van. There were
various problems that were faced by Barry. The problems were of revenue that was very low as it
was said, the van for delivery was repossessed and it was on the lease, the competition was there
and replacement of loader was required. The issue in this situation is whether the contract was
valid or not.
Rule
4 McKendrick, Ewan, and Qiao Liu. Contract Law: Australian Edition. Palgrave Macmillan, 2015.