Business and Corporations Law: Case Studies and Legal Advice

BUSINESS AND CORPORATIONS LAW
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Table of Contents
Introduction.......................................................................................................................................3
Question 1.........................................................................................................................................4
a. Whether the contract for the sale of gold is enforceable?................................................4
b. Whether Kevin would be successful in his claim for negligence?...................................7
Question 2.........................................................................................................................................9
a. Whether Florence would be successful in any claims against Renzo;...........................9
b. Whether Florence has any obligations to pay GLO; and................................................10
c. In both cases, whether Florence would have access to any remedies under contract
law................................................................................................................................................11
Question 3.......................................................................................................................................13
Conclusion.......................................................................................................................................16
References......................................................................................................................................17
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Introduction
In this task, different case scenarios are provided and that can be analysed to reach the
solution. The first problem is related to the elements of a contract and their revocation and
what are their remedies. The second question is related to the misrepresentation of facts
by the parties at the time of contract and what are the remedies available for this. The
third problem is based on the conversation and the party requires the legal advice in
regard to establishing the business. He also knows the strength and weakness regarding
their decision.
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Question 1
a. Whether the contract for the sale of gold is enforceable?
Facts of the case:-
Terry Tyler, a financial advisor has money to invest. At a casual family meeting, he
received an offer for the purchase of gold from his cousin Susan. He asked Susan if she
could write to him by post stating the minimum amount she would be willing to accept.
On January 27, Susan sends a letter to Terry stating $450,000 to be the minimum amount
for the 100 gold bars she is willing to sell. On January 29, Susan was approached by
Renzo Rocco who was willing to buy the gold at $600,000. Susan, on January 30, wrote
to Terry that she has a better deal for the gold and is not willing to sell him the gold. On
February 3, Terry received Susan’s letter making the offer and he immediately wrote a
letter accepting the offer and enclosed a deposit slip of $45,000 and posted the letter on
the same day1.
Later, on February 4, Terry received another letter from Susan Withdrawing the offer.
The question involved:-
Whether the contract for the sale of gold is enforceable?
Answer:-
As per the Australian Contract Laws,
The offer means a communication made with intention to form a contract which comes
into force as soon as it is accepted by the person to whom offer is made. Person making
the offer is called offeror.
1 Clarke, J., (2012). Agreement. [Online] Australian Contract law. Available at:
https://www.australiancontractlaw.com/law/formation-agreement.html [Accessed on 15
May 2018].
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