Australian Commercial Law Questions 2022

Running Head: BUSINESS AND CORPORATION LAW
0
Australian Commercial Law
9/10/2019
Student’s Name

Australian Commercial Law
1
Contents
Part A...............................................................................................................................................3
Question 1 3
Issue..........................................................................................................................................3
Rules.........................................................................................................................................3
Application...............................................................................................................................3
Conclusion................................................................................................................................4
Question 2........................................................................................................................................4
Issue..........................................................................................................................................4
Rules.........................................................................................................................................4
Application...............................................................................................................................5
Conclusion................................................................................................................................6
Question 3........................................................................................................................................6
Issue..........................................................................................................................................6
Rules.........................................................................................................................................6
Application...............................................................................................................................7
Conclusion................................................................................................................................7
Part B...............................................................................................................................................7
Issue 7
Rules 7
Application 9
Conclusion 9
Part C...............................................................................................................................................9
Issue 9
Rules 9
Application 11
Conclusion 11
Bibliography..................................................................................................................................12

Australian Commercial Law
2
Legislations 12
Case Laws 12
Books/ Journals 12
Other Resources 12

Australian Commercial Law
3
Part A
Question 1
Issue
Whether an intention to create legal relationship between Sally and Ethan existed there? If yes,
how the court would determine the same.
Rules
Intention to create a legal relationship is one of the crucial elements of contracts. In general, the
court does not consider this element to be presented in the social and domestic agreements and
therefore such agreements fail to become a contract as decided in the case of Jones v Padavatton
1. Nevertheless, in many of the cases, such intention found to be there even after the social
relationship between the parties considering other elements2. In the case of Errington v Errington
Woods3, the court decided that if parties to the contract develop written contract then an intention
to create legal relation looks to be there.
Application
In the case presented hereby, Sally and Ethan are two parties to the contract. They are cousins
and in this manner has a social relationship. Sally sold her business to Ethan for consideration of
$155,000. They have developed a contract of sale for this transaction and applying the provisions
of Errington v Errington Woods, seems to be held intention to create legal relations.
1 Jones v Padavatton [1969] 1 WLR 328 Court of Appeal
2 E-lawresources.co.uk, Intention to create legal relations (E-lawresources.co.uk) < http://www.e-
lawresources.co.uk/Intention-to-create-legal-relations.php>.
3 Errington v Errington Woods [1952] 1 KB 290