Legal System and Contracts in Australia

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Australian Commercial Law

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Part A
A tribe which is situated in the jungles of South America has developed a constitution which
includes various provisions regarding punishing the tribe members if they use violence
against other members. Before developing the constitution, the tribe followed an informal
procedure to hold the tribe members liable which was not successful. The new constitution
complies with the principles of Hart’s three-part legal system, and it provides formal
procedure for holding tribe members liable for using violence against other members. The
provisions of penalties which imposed on the tribe members for their violent actions are
clearly defined, and they are recognised by each tribe members as provided in the rules of
recognition principle. Various rules are included in the constitution for changing, deleting
and adding regulations relating to criminal actions of tribe members as given in the rules of
change1.
Lastly, the rules of adjudication element are present as well because the procedure of
holding people liable is decided through a trial in which the authorised members evaluated
the facts of the case to hold a member liable for his/her actions. The rules for protecting
tribe members from violent actions include punishing the guilty member by imprisoning him
for a specific period based on the crimes. The constitution also protects members by
providing them rights based on which they can claim for damages from the member who
used violence against them due to which they suffered a loss. These rules are established to
let tribe members know that if they use violence against other members, then they will be
punished. It reduces the number of violent acts in the tribe and promotes a peaceful
environment.
1 Patrick Parkinson, Tradition & Change in Australian Law (Law Book Company, 1994).

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Part B
The criminal justice system established in the United Kingdom applies in England and Wales.
The legal system considers that the criminal actions are wrongs which are made against the
whole society rather than a single individual, thus, the state is authorised to take
appropriate steps to stop and punish people who conduct crime in the country. Various
penalties are imposed on these criminals after proving their crimes to prevent them from
doing them again and protecting the citizens. The Criminal Law Act2 imposed various
penalties on individuals in order to punish them for their criminal conduct. The Criminal
Justice Act3 focuses on establishing justice by protecting the rights of citizens. The main
penalty which is given by the court to criminals includes imprisonment for a period which is
decided based on their crimes. The court also discharges the criminals or enforces them to
pay damages to the parties who suffered loss due to their criminal conduct. In serious
crimes, the court gives life imprisonment to the criminal.
The principles of Hart’s three-part legal system present in the legal system. For example,
these policies are recognised by everyone, and there is no ambiguity exists in the law. The
rules of change are clearly defined based on which the parliament can make changes in the
law4. The process of adjudication is established, and the courts have given authority to hear
and decide criminal cases. In Australia, the principles of Hart’s three-part legal system apply
as well. The criminal law applies to everyone, and the procedure of change is given as well.
The courts are authorised to hear and decide criminal cases. The legal system is borrowed
from English legal system, thus, penalties are same such as imprisonment, payment of
damages, discharge and life imprisonment in serious crimes as given in the Criminal Code
Act5 and the Crimes Act6.
2 Criminal Law Act 1967
3 Criminal Justice Act 2003
4 Clive Turner, John Trone and Roger Gamble, Concise Australian Commercial Law (Thomson Reuters, 2017).
5 Criminal Code Act 1995
6 Crimes Act 1914

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Part C
Issue
The legal issue raised by Gumland Property Holdings Pty Ltd. V Duffy Bros Fruit Market
(Campbelltown) Pty Ltd7 case is whether the landlord can terminate the lease agreement if
the tenant failed to pay the rent on time?
Rule
There is no difference between a lease agreement and commercial contract. Both of these
contracts have certain terms which parties have to fulfil. Just like a commercial contract, a
lease agreement which is formed between two parties can be terminated by the parties in
case an essential term of the contract is violated by the party8. The payment of rent clause
in a lease agreement is considered as an essential term because it is the consideration of the
contract. In case of non-payment of the consideration of the contract, the parties have the
right to terminate the contract. Furthermore, on non-fulfilment of an essential term of the
contract, the parties have the right to demand the loss of bargain from the breaching party
for the loss suffered by them9.
Application
In the case of Gumland Property Holdings Pty Ltd. V Duffy Bros Fruit Market (Campbelltown)
Pty Ltd, a property was given on a lease for 15 years by Transit Management Pty Ltd
(Transit) to Duffy Bros Fruit Market (Campbelltown) Pty Limited (Duffy). After a few years, it
becomes difficult for Duffy to pay off the rent of the property. Thus, a deed was signed by
both parties to sub-let the property to a third party which will pay half rent of the property.
Transit sold the property to Gumland Property Holdings Pty Ltd (Gumland) in 2001 along
with the rights related to the lease of the property. The sub-lease agreement expired in
2002; however, the sub-tenant did not want to extend the lease agreement. The sub-tenant
did not vacate the leased property and started paying only half rent for the property10.
7 (2008) 234 CLR 237
8 Clive Turner, John Trone and Roger Gamble, Concise Australian Commercial Law (Thomson Reuters, 2017).
9 Dilan Thampapillai et al., Australian commercial law (Cambridge University Press, 2015).
10 Justin Lethlean, A landlord’s right to recover loss of bargain damages (2008) Mondaq
<http://www.mondaq.com/australia/x/62514/landlord+tenant+leases/A+Landlords+Right+To+Recover+Loss+
Of+Bargain+Damages>.